Winter solstice is here, and from now until June 21. 2023 in the Northern Hemisphere, the days get longer.
What concerns me most is whether markets and in particular MNQH23 still have enough bullish momentum and buyer volume to remain above key price support levels and move higher. Anyone using a ruler or some kind of trend drawing technique knows we seem to be in the game once again of hitting lower highs and lower lows. A structural low of 10608.50 and a VWAP of 10858 and one below that of 10487 remain in place and are pillars of support for any rally. If they hold this week, I will discuss this in more detail over the weekend.
If MNQH23 can remain above the current VWAP line of 11174.75, then it has a shot at 11263.25 and taking out structural resistance at 12275 to potential targets of 11316.75 and 11385 over the next couple of days. If not, we might see another test of 11066.25 and potential lows of 11012.75 and 10944.50, getting ever closer to the key support levels I mentioned in the last paragraph.
There is so much confusion both in the economic data and in the veracity of reporting economic data that I am certain there is still some visceral fear among the retail investor and institutions as we get closer to the end of this year, which is basically 10 calendar days away. We will have to see how key employment, LEI (leading economic indicators), and corporate profits data tomorrow and Friday to get another snapshot.
I was profitably long yesterday, but if nothing shows this morning I am fine with it. It will be interesting to see if trading volume slows down or not. If trading is sloppy, I will pass on trades today, if it is not, I will look for the best potential entry point for a breakout in either direction.
More soon.
Economic data courtesy of Econoday dot com.
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