Price, Price Spread, Lagged Price/Volume Spread, and Binary Price/Volume Indicator
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Fibonacci Price Scale With Targets
This write-up deserves a video, but I do not have the time at the moment to do it. If one remembers the Friday and the weekend review, one remembers that line around 12505.50 and 12550.50, where the leveling-off phase after the Federal Reserve rate decision happened. Well, it seems Europeans overnight saw the big green bars to the far left that represent all the euphoria of the Fed rate decision and they are capturing the excesses by selling against them.
This leads me to have to read the scale outside the 0-100% Fibonacci scale lines. In the pre-market, it is possible that if we don’t find support around 12461.50, we could see further selling back to 12348.25 or as insanely low (in terms of last week’s bullish action) of 12233.25 and perhaps even beyond that back to key support around 12169.25. While that sounds wild, remember where we were and how quickly levels were broken to the upside. All we are doing, painted against a wide price range, is a correction back to previous support represented by the yellow VWAP lines.
If we can muster rally strength above 12550.50 then we have a shot again at 12826 and any and all of the green squares beginning at a previous high of 11877.75, 12966.75, and 13080 are possible over the next couple of days.
These swings have nothing to do with earnings or equity fundamentals, the is a battle between institutions and the Federal Reserve over the crack cocaine of cheaply borrowed and worthless US Dollars getting pumped into or out of an overvalued equity market, in my opinion. If you have the time, go to The Buffalo Trader’s News Aggregator and read the two articles from “The Best of Mises” about the time value of money and how the banks and Federal Reserve have bastardized the process for their own “wealth generation” which is, in fact, the confiscation of assets with worthless money.
I traded long successfully on Friday and left the week with a profit. I will do that again no matter which direction the market trades in. Today may be one of those days when both opportunities may present themselves, long or short. I still believe we have yet to fully determine the next peak or trough of MNQH23. We are still locked in a struggle of what gets seen first, the 13-handle or the 9-handle. I will be there to trade it either way.
If you think this market is worried about the “Chinese Spy Balloon” and China’s retaliation, let me help you out. In the world I grew up in if someone crossed over on your property and threatened you, you pushed back hard. We didn’t worry about retaliation because we would bring more of our own to meet it. After all, it was OUR HOUSE AND OUR BACKYARD.
In a nation where drag queens in dresses are lauded at the Grammys and gender is just a construct and not a part of human anatomy, the whole idea of our self-defense I guess is just considered “toxic masculinity”. That to me is total bullshit, but I will quit there. Don’t GET ME STARTED.
If we are seriously worried about what a dictator (other than the one we live under now) does, we are doomed as a republic.
Enough, and have a wonderful day and week of trading. I will return.
Economic Data Courtesy of Econoday dot com.
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