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
After yesterday’s selloff and rally in MNQM23, the Asians apparently sold everything back to around 13054, and the Europeans basically hugged the price support and resistance rails around 13054 and 13077 like drunken sailors until the 0600 EDT hour when buying seems to have taken hold.
I am not going to speculate as to what will happen today other than to say that these markets are locked onto Federal-Reserve-speak and U.S. Treasury-speak and will simply (potentially) slam the rails in one direction or the other based on the last data point. That basically explains why these markets have basically not gotten anywhere in the last month to 6 weeks.
If MNQM23 can remain above 13077.25, it has an excellent chance of taking out the VWAP line at 13162, then rallying to the old swing high of 13209.25, beyond to 13275, and perhaps to 13358.50 over the next couple of days.
If that does not happen, then MNQM23 likely falls back to 12967.50, back somewhere at or below 12928.75 to 12901.75, and even farther back if sellers get active to 12818 over the next couple of days.
Since on potentially active days like today (and THIS IS ONLY AN ESTIMATE AND NOT A FORECAST), if bullish symmetry works with volume, the shaded green AB=CD pattern could complete a target of 13280. A similarly bearish AB=CD could take MNQM23 all the way back to 12813, right at the 161.8% extension of the last bullish move that worked against any potential bearish activity. NO ONE KNOWS WHAT WILL HAPPEN. The purpose of running those calculations is to come to grips with reasonable price action that develops from previous trading activity.
If I were a guru, I would not have gotten booted yesterday, costing me 19 NQ points. I was right to be short, but I did not wait for the full break of the 2 standard deviation line, and volume looked strong enough to carry the trade, which it was not yet until after I had to move on to other business. I shall remember that caution today, as activity could be brisk as we run to 0830 EDT (when the PPI and CPI data come out). and afterward.
That is all for now. Have a wonderful Wednesday and a safe, productive, and profitable day all around. More will be coming soon.
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
