The battle between the Fed buy programs and natural forces of deflation continues on. On Tuesday NQ stayed above 4855 key inflection price level in the morning but failed to attract any buyers to help rally the market higher, then in the afternoon NQ broke below 4855, but late day buy program managed to push NQ back up to close right at 4855.
Also, n Tuesday the Fed whacked the paper gold market very hard, selling over 1,000 tons of paper gold, a desperate attempt to either save the dollar, or a prelude to either lowering interest rate in the November meeting, or a prelude to QE4 or simply to save the gold bullion bank from their deep under water short positions. Whatever the reason may be, it is a desperate attempt to prevent collapse.
For Wednesday 4855 remains key inflection price level.
-- Above 4855, selling should remain under control.
-- NQ would need to break below 4800 in order to trigger massive selling activities. Until then, NQ should remain in a choppy mode.
Former Soros Associate Says Fed Responsible For Gold & Silver Smash
