Hourly MNQH23 chart Price volume analysis (sadly with ratio rolled onto price spread by a glitch in the latest version of TradeStation) with up and down volume overlayed with a 50-hour moving average
Hourly MNQH23 chart Price volume analysis (sadly with ratio rolled onto price spread by a glitch in the latest version of TradeStation) with binary price/volume indicator.
Hourly MNQH23 chart with Fibonacci scales and price targets
Once again it appears that Asian and European buyers attempted to pull MNQH23 out of the ditch again which is where US traders and institutions left it at the end of the session on Monday. It would appear as though we are running up against previous price support as Europe goes into its mid-session and the USA wakes up.
You can once again see that the market trades below its volume-weighted average price line where the central distribution point of traders stands at the present time, which is 11309.25. If buyers can get above that 11309.25 price level, then 11278 and 11342 are pretty easy targets to hit assuming buyers maintain momentum.
If not, it could be a short trip back to 11042.75, 10992.50 and 10928.50. What one needs to realize here is that there are substantial gaps below 10928.50 that take you quickly back to 10608.50 which is a momentum low that kept the last selloff from falling back into 9-handle prices. Those prices would represent old breakout highs of the “post-covidiocy” era of market funk. I think you can tell I was no fan of the lockdowns and the destruction of the American small-business economy that resulted from them.
I have no idea which way the market will run today, but buyers, if they lack confidence, could literally be set up for Quarter 1 2023 weakness that drives these markets into longer-term structural lows. We will simply see how that progresses. I think some institutions read the Philly Fed’s job numbers revision, conveniently released after the election was over, that shows paucity in real job growth. We will have to see how that changes market sentiment into January 2023 when new job numbers are released.
I was considering taking a break this weekend from writing, but I want to see what lies above and below the current price action to see if any change in targets is needed.
I will let you know what I find, and if it is significant, I will be in your email inbox.
I was net short and profitable yesterday. Not sure yet what today will bring, but I will attempt to trade early in the session. Let’s just see what happens.
More soon.
Economic data courtesy of Econoday dot com :
4-Week Bill Settlement
8-Week Bill Settlement
4-Month Bill Settlement
Housing Starts and Permits
8:30 AM ET
4-Week Bill Announcement
11:00 AM ET
8-Week Bill Announcement
11:00 AM ET