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’s selloff in MNQM23 ( supposedly caused by concerns over stagflation ) was followed by a weak rally in Asia and then another selloff back to nearly the previous day’s support this morning.
Lots of ISM Manufacturing and S&P Global Manufacturing data is out today and that could provide some additional data to support that thesis, but quite frankly, I still believe this market has a short-term hedging mentality and not any forward analysis based on business conditions. As a result, even though MNQM23 started strong this year, it still has the tendency to want to drift sideways. EIA energy data, given recent short covering and production cuts in crude oil, might give rise to more inflation fear, but I think it is anyone’s market at this point. There is still room up to 13700 roughly in MNQM23 followed by another gap into the low 14-handles, but the same quagmire lies below in the 12-handle range.
If MNQM23 can rally above 13228.25, there is a good chance it could rally back to 13280, and to 13348.75, 13397.75, and 13460 over the next couple of days. If not, it is a very short trip back to 13168.75,13119.75, and 13057.50. There is price support along the area of 13138.75. Whether that represents firm support will be determined shortly, I would imagine.
There is an AB=CD bearish pattern that could end around 13066.25 if price symmetry holds. THERE OF COURSE IS NO GUARANTEE THAT WILL HAPPEN.
I am absolutely agnostic with respect to trends currently, as (how many times have I said this?) Congress, the Federal Reserve, and the U.S. Treasury have yet to stand on solid ground with fiscal, monetary, or budgetary policy. Since, in my opinion, our government is infected by foreign and corporate money and power and money greed, this will not be easily settled without a major cleanup of the bureaucracy in Washington and quite a few state houses. Until that time, traders and investors need to hedge and take profits in both directions to protect themselves from the chaos we live in currently.
That is the nature of the beast. I will work my trade plan based on the volume profile, price and volume momentum, and Fib patterns and targets. I picked off another 24 NQ points yesterday in the early session before moving on to other business.
I have no idea what will happen today in either direction. That is why I will follow my trade plan and risk parameters closely.
More will be coming soon. Have a fantastic Wednesday and a profitable day trading and whatever else you do today!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
