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
Had a few technical issues this morning that have been repaired. Sadly I could not edit the title yesterday before it shipped, so I repaired it this morning. :(
MNQM23 looked weak into the early session yesterday but rallied nicely, and overnight Asia and Europe basically kept a slow melt-up going. The economic data slate is relatively light today ahead of the Fed announcement. If news breaks, the gaps are pretty wide now in both directions. The best I can do is try to make estimates based on previous price action and move forward from there.
I took the lowest swing low to be the lower anchor of the Fibonacci scale as a result of that movement.
If we can remain solidly above 12645 to 12674 (where the cluster of previous and current VWAP lines are, we have an excellent chance of breaking above 12747, 12801, and 12875 in the next day or so.
If not, and we fall back into the area where the wide candlesticks were created in the previous rally, price support will be challenged near 12571.75, 12525.50, a retest of 12491.75 could occur, and if that is broken, 12466 and 12390 are likely the next potential targets.
There has been quite a bit of trading as evidenced by the VWAP lines right below 12500, if that breaks substantially, then we are falling back into the 11 handles again. If not, we could still tread water in a neutral price action environment until news breaks about monetary policy. We could also break out into the 13 handles, depending on what happens tomorrow. Such is this bipolar market.
I am not going to choose sides. I am going to wait for the pattern, volume profile, and price momentum information to show up before I trade. I successfully picked off 40 NQ points per contract yesterday by going short on a measured target. Shortly after that, the rally began. I have no idea what will happen today, but I will do all I can to be ready for the trade if it meets my criteria, or I will not trade.
That is all for now. More will be coming soon. Hopefully no more internet glitches. Have a great day today and a profitable day in the markets.
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
