As the United States gets closer and closer to financial collapse the war drums is getting louder and louder. In fact they have started their massive bombing of Syria.
War is needed in order to keep capital flowing in the US dollar assets, particularly into the stock and the US treasury bond market. I fact a major war is necessary to get capital running to their perceived safe heaven, the US government treasury bond.
Continual capital inflow into the US treasury bond is needed even more urgently now that the Fed has decided to trim down its balance sheet, to avert exodus of capital from the US dollar denominated asset and thus avert financial collapse. But the end game is fast approaching and seems unavoidable.
On Tuesday NQ remained below 5400 key resistance price level, but also remains above 5360 key support level. Once consolidation has ended, NQ should either resume its downtrend or reverse back up to retest its recent high.
Key price level for Thursday will again be 5360 support and 5400 resistance.
-- A sustained break out of the 5360-5400 trading range should trigger a trending move in the direction of the break.
-- On a break below 5360, lower supports are 5340 then 5320. A sustained break below 5320 could trigger a massive liquidation drop, strong support are way lower.
-- A false breakout of the 5360-5400 range would quickly be reversed in a very fast fashion.
-- Remaining inside the range implies choppy sideways trading pattern.
Gold has just broken above its key resistance 200-day moving average. it should now rocket upwards as short seller starts to cover or get liquidated.
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