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 Without Targets (so you can see the overhead VWAP resistance congestion).
Clean Fibonacci Levels Chart
Yesterday’s weaker-than-expected manufacturing data along with other consumer data of the past few days seems to be flying the stagflation flag, and thus traders sold a bit en masse as the day progressed yesterday. That continued overnight largely in Asia and in Europe and MNQH23 has a bearish pall as Thursday morning hits America.
The last chart is a clean representation of Fibonacci levels, but what I posted in the other chart, with all the VWAP lines in it, was to demonstrate levels of resistance to future rallies in MNQH23. As we know with the bipolar nature of this market, any bread the Federal Reserve can hint about a pivot, and crazy as that might be, could drive this market all the way through those resistance levels and back to the 13-handle and more. If not, there are levels in the 11600s and lower that this market could take out in a continued selloff.
If MNQH23 can rally above the 11906 VWAP line, then it has a chance to get to 11930 and to 11991.75, and perhaps even 12036.35. The 12064 WVAP line may be tough resistance, but if buyers get busy, one could see 12090.75 taken out.
If not, then then it’s a short trip back to 11831.60, 11788, and 11732.50.
The real hardcore interest rate and employment data hit next week, so it is anyone’s guess as to how this week sets up as Friday ends. All I can tell you is that I will continue to select the best entries and if none exist, I will stand aside.
Yesterday I got the boot going short. Even though my target was hit, there was a surge of buying that came before it, so I took a tiny hit. I am still very profitable this week, so life will go on. I shall continue the trade and scale project as planned.
That is basically all I can add today. I will return tomorrow with more analysis. Let’s see what happens today. Have a wonderful day trading and a wonderful day generally!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.