**Elsewhere In The Market** The Emini Nasdaq has broken below the neckline of a two-month head and shoulders pattern at approximately 24,850. This confirmed break signals over a 50% chance of a moderate decline, indicating a sell signal for the medium term. If it breaks below 24,600, it would trigger another sell signal, which might create a buying opportunity around 24,200/24,000. Traders with long positions should set stops below 23,850, while those with short positions should set stops above 25,100, due to strong resistance at 24,850/24,950. Currently, EUR/USD is around 1.1600, and GBP/USD is near 1.3150 during European trading hours. Gold is close to a one-week low, and Bitcoin has fallen below $90,000. The S&P 500 continued its pullback from the previous trading day, while Solana experienced a 2% rise. FXStreet offers market insights and subscriptions for expert-driven analyses directly sent to subscribers’ inboxes. It’s essential to clarify that the information shared here is for informational purposes only and is not investment advice, as market investments come with risks, including the potential loss of principal. The views expressed are solely those of the authors. **Market Sentiment And Economic Data** Stocks are poised for a notable decline as we approach the end of 2025. The Emini Nasdaq has dropped below a key support level at 24,850, completing a bearish pattern. This serves as a critical medium-term sell signal, suggesting further declines may be in store. This technical breakdown coincides with disappointing economic data. Last week’s October CPI report came in unexpectedly high at 3.9%, heightening inflation concerns. Additionally, U.S. jobless claims rose to 245,000, their highest level in three months, indicating the labor market may be cooling. This mix of persistent inflation and slowing growth is affecting investor confidence. A similar market situation occurred in autumn 2023, leading to a sharp 10% drop in the Nasdaq the following month. This historical pattern shows that once key support levels break, declines can happen quickly. Traders should brace for increased volatility in the upcoming weeks. For those trading derivatives, it may be wise to consider buying put options or taking short futures positions. A decisive move below 24,600 would confirm this trend, potentially leading to a decline toward our target zone of 24,200/24,000. Any rebounds to the 24,850/24,950 range might present chances to enter new short positions. Risk management is crucial in this scenario. Short traders should contemplate placing stops above 25,100 to guard against sudden reversals. Those looking to go long should employ a tight stop-loss below 23,850, as failing to maintain that level could result in a more severe decline. Create your live VT Markets account and start trading now.

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