The S&P and Nasdaq indices are stable, with the key channel base at 6863 helping to ease downward pressure. The resistance level is currently set at 6855, while support levels are around 6746/6734. If support is lost, it may lead to buyers exiting the market.

December Market Dynamics

December brings challenges due to year-end positioning and the trader bonus season. Caution is advised as history shows that market declines can happen faster than gains. In the latest market news, AUD/USD has stayed unchanged amid differing US and Australian data. WTI prices have risen as OPEC+ halts production increases. The EUR/USD remains stable despite mixed PMI data, while GBP/USD is still strong ahead of possible rate cuts next month. Gold starts the week on a positive note, approaching $4,300 due to expectations of Fed rate cuts. SB Seker, Binance’s Asia Head, talks about the crypto market cycle and recent regulatory changes in an interview. The Chinese market is shifting from a consumer base to an innovation center for Western companies. The article also highlights the top broker choices in various regions and trading styles, predicting the best brokers for 2025. We’re observing the Nasdaq struggling just below the 6863 resistance level. This is a crucial point: if it breaks above, we could see a year-end rally. However, if it fails, expect a quick decline towards support near 6740 as buyers may lose confidence.

Risk Management Strategies

The market is anticipating a Fed rate cut this month, especially after November’s CPI report revealed inflation easing to 2.8%. However, the upcoming Non-Farm Payrolls report this Friday will be vital in confirming or disrupting this expectation. Unexpected strong hiring figures could lead to a sharp revaluation and push the indices lower. The VIX has risen from 13 to 17 in the last two weeks, making options premiums more expensive and indicating rising uncertainty. Now could be a good time to buy puts for downside protection if support at 6734 gives way. For those expecting a breakout, call spreads could be a cost-effective strategy to capitalize on a move above 6863. We should remember that December can be tricky for trading due to low liquidity and year-end dynamics. While many hope for a Santa Claus rally, history reminds us of the market’s rapid downturn in December 2018. Historically, markets tend to decline much faster than they recover, especially during the holiday period. The weakness of the US dollar is strengthening other currencies, keeping EUR/USD above 1.1600. Gold benefits from the rate cut narrative, aiming for a significant target of $4,300 an ounce. These trends reflect a dovish stance from the Fed but could quickly reverse if new data suggests otherwise. Create your live VT Markets account and start trading now.

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