Price, Price Spread, Lagged Price/Volume Spread, and Binary Price/Volume Indicator
Price and Total Volume With 50-period Moving Volume Average
Fibonacci Price Scale With Targets
It appears Asian and European traders held the VWAP line around 12311 and helped MNQH23 rally overnight as this market recovered from Friday’s slump. Given the fact that one of the two most emotional ( traders don’t get emotional do they?) economic numbers, the consumer price index (CPI) comes out at 0830 EST tomorrow, the question is whether the market will continue to rally to price resistance above it around 12456.50 and beyond or will it simply fade back below the 12311 VAP line and back into VWAP support at 12140 and below.
If MNQH23 can continue to hold the 12311 VWAP line, odds are good that it can rally to 12421.25 and head to 12470.25 to 12532.25 in the next 24 to 48 hours. If it cannot, then 12311 is easily at risk of being broken and a sell-off back to 12243 and 12194.50 can easily be done in 24 to 48 hours. Reaction or anticipation of CPI numbers could influence this, but I will see that through volume and price momentum, and I am prepared to take action in either direction when it happens.
The future is unknowable, and the folks running monetary and fiscal policies in Washington are nuts, but the inevitability of those factors forces traders to manage risk and be prepared for action. That is why I look both ways (up and down) before I decide what to do.
More will be coming soon. Have a wonderful day today.
Economic Data Courtesy of Econoday dot com
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