NQ remained above 4700 support on Friday which provided much needed relief from selling pressure. NQ then simply traded sideways in a relatively narrow range.
With Trump's presidential victory the stage is now set for massive debt-deflationary collapse and at the same time the Fiat currency hyperinflationary collapse which has now started in many emerging market and eventually come to the United States in not so distant future.
The global bond market has started to collapse, including the US bond market. Within a span of just a few days since the presidential election the 10-year US treasury yield has spiked from a low of 1.5% to over 2.00%, thus draining much needed liquidity.
In their attempt to counter deflationary forces, central banks are sure to create massive amount of helicopter money, setting a stage for hyperinflationary collapse of global fiat currency system. We should see asset price deflation & goods and services hyperinflation happening all at the same time. In such as scenario gold and silver is going to shine.
On the short-term 5-minute timeframe, key price level for NQ on Monday will be 4740.
-- Sellers should remains relatively inactive above 4740, next resistance is 4800.
-- NQ could come under selling pressure below 4740, but it would need to break below 4700 to trigger another round of algorithm liquidation selling activities, next support is 4500-4550.
