Price, Price Spread, Lagged Price/Volume Spread, and Binary Price/Volume Indicator
Price and Total Volume With 50-period Moving Average Volume
Fibonacci Price Scale With Targets
It appears overnight once again that Asia and Europe purchased the excesses of sellers from Tuesday’s trading for MNQH23. We did blow through 12107.50 last night, so the sky opens up for buyers to close to 12311, but so much data comes out this morning that no one can be certain what the reaction will be given some of the bearish forecasts for the coming year. There are signs of contraction and expansion in business everywhere, and I personally do not think that the Federal Reserve, Congress, or the U.S. Treasury are honest about consumer inflation and its effects. When our government hands out money to tin-pot Eurasian dictators and can’t handle what happens here domestically, well, you know that anything is possible.
Everything seems bullish this morning, but I will cover both the bull and bear sides equally as I always do. If we can remain above 12107.50, then 12173.75,12195.50,12224, and even 12287.75 are possible within a couple of days.
If MNQH23 cannot stay above 12107.50, then there are tons of support areas it could land on or break below, like 12059.75, 12043, 11989.25, 11939, and if it breaks through that 11938 VWAP line,11875.25.
There is a lot of potential VWAP support near the lows I have mentioned. If that support holds and buyers get moving again, a bullish scenario like I proposed yesterday (I would have used the word postulated, but I am too much of a redneck to do that), then we could indeed be off to finding the 13-handle and beyond. Things are so crazy and some data so unreliable, we will simply have to trade through that morass of what is presented, and just manage risk and see what happens.
Yesterday I picked up 49 NQ points per contract short, and I walked away having hit my Fibonacci target. My first goal, as always, is to protect equity, so we will simply have to see what is offered today. If nothing arises, I will not trade.
That is all I have for now, but more will be coming soon. Have a fantastic day trading and a great day overall today.
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.