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
Yesterday sellers pushed MNQH23 all the way back to 12634.75, a tiny bit beyond the estimated low, but a reasonable estimate that (based on Fib scale and Fib pattern analysis), kept you in the ball game relatively speaking.
As has been the case for several days, the overseas markets either buy back or sell off the excesses of the previous session. This past evening shows similar attributes, with Asia and Europe buying back what sellers were pressing in the US trading session.
The question now is, will we recover once again into the 13-handles, or will we once again bounce off of previous resistance for another ride on the MNQM23 rollercoaster?
If MNQM23 remains above 12822.50, it should be an easy trip to 12856.50, 12917, and perhaps 12993.50 by the end of the day tomorrow (of course, it can happen sooner, but it really depends on market reaction.
If MNQM23 cannot hold 12822.50, it very likely finds support near the 12682 VWAP line, and if that support breaks, a retest of 12634.75 is possible and perhaps a pullback to 12574.50 or even 12497.75 in the next couple of days.
There is too much craziness in the news cycle to predict any outcome. The only thing you can do is monitor price momentum, volume, Fibonacci patterns, and the volume profile to guide you in trading. In the current environment given the crazy shifts in volume, one must also wait for the price momentum to catch up to the volume to obtain targets, which is what I continue to do, using reasonable stop-loss targets to prevent blowing up trade capital.
Yesterday I picked up 25 NQ points short and then left the building to do other business. If I see something that fits the trade plan, I will trade it. If not, I will sit on my hands and come back tomorrow.
More will be coming soon. Have a fantastic Wednesday and a profitable day in the markets.
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Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
