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
To be frank, I think everyone knows that this is a lot of CYA happening between the Fed chair and the Treasury about covering bank assets, and Yellen’s comments yesterday were, in my redneck opinion, a signal to large hedgers and traders to sell the profit in MNQM23 obtained in the pre-announcement rally, and that is exactly what they did, driving prices back down toward the old VWAP line around 12677.50. What Asia and Europe did was to buy back that bottom (which was against both price and VWAP structure, and a reflex rally continued back at least to resistance at the 12900 area.
We may have raised the ceiling of that channel between 10737.25 and now 13081.75, giving this market a slightly bullish bias, but MNQM23 is still a prisoner of Fed policy and general news panic. Until the whole issue with bank solvency and rate policy is settled, this market will travel between “floors” shown via WVAP lines and price structure. That is great for traders and horrible for investors.
If MNQM23 can remain above 12888, then this market can rally back to 13081.75 and even 13191 by Friday if enough buyers press. If not, we go right back to 12677.50, 12567.50, and even 12427.50 if the VWAP level of 12491.50 is taken out.
That is the environment we operate in today. Despite several breakeven bounces yesterday, I managed to pick up 16 NQ points before 1100 EDT when I had to move to other business. The real breakout happened shortly after, and I was too busy to capture the short in the afternoon. That one had more volume force, which led me to the beliefs of what I stated at the top of this post.
This is a trader’s market, but you need to use stops and use target discretion to take profits and wait for new signals. No trade plan, no profit.
More soon. Have a wonderful and profitable Thursday.
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
