GM Ninjas! Let's do a Market Watch... US equity futures experienced a sharp decline overnight as the strong rally in technology stocks shows signs of losing momentum in the final trading sessions of 2024 Let’s see what’s next! -- Macro Viewpoint Global stocks dipped amid light trading typical of the holiday season, as a robust rally in technology shares showed signs of slowing during the final sessions of 2024. US equity futures pointed to a softer open on Wall Street, following Friday's decline driven by a pullback in major tech stocks. The benchmark index posted modest gains last week, with analysts attributing the performance to a strong rally earlier this year that significantly boosted valuations. The index has remained in a bull market for over two years and is on track to close its second straight year with gains exceeding 20%. Later this week, investors will turn their attention to the Institute of Supply Management's December manufacturing survey and the latest weekly jobless claims report, both ahead of a critical employment report due the following week. -- E-mini S&P 500 (ES) 🌘 Overnight Activity The entire overnight session has been a continuous sell-off, which intensified during the European session opening. We’re looking at another considerable downside gap opening, with the market 80 points away from the settlement as of the time of this post. 📊 Outlook When the volume is light—which has been the theme of this entire environment since last week—it can trigger significant volatility in price action. This is because the market is primarily controlled by weaker-handed traders during these periods, who tend to exit their positions immediately when trades move against them. The focus for the entire week is on momentum: following that momentum rather than attempting to fade a trend. 🟢 Bulls must begin the recovery path toward the all-important 6000s by filling the overnight gap to the upside and flipping 5998 into support, targeting the settle. A successful closure of the current overnight gap will put many sellers underwater, potentially triggering a short-covering rally that could reach the unfilled gap to the upside. 🔴 Bears will aim to capitalise on the weakness carried over from the overnight session, pulling back toward today’s pivot. If the market fails to sustain activity above this reference, we anticipate another extreme liquidation break that will see another swing low back to the 5800s. -- This content, along with pro trades and additional insights, are provided by one of our professionals on Discord. To access, hold a Gold NFT or possess 10K+ TRDM tokens to unlock exclusive channels. Learn more at the TradeMaster Discord: discord.gg/trademasterninja Join the Ninja Community on Telegram: t.me/Trademaster_Ninja #trademasterninja $TRDM #TRDM