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
It was tough making swing measurement settings for Fibonacci scales this morning because as the Asian sessions ended European traders jumped on board MNQM23 and took it above 13250.25 on its way to 13274 and beyond perhaps, but it goes to what will be the major theme (upside AND downside) over the next two weeks. I think economic data as we get closer to the May Fed decision will be emotional triggers for traders who will try to infer what happens next with Fed funds rate decisions.
If one notices the hoard of VWAP lines building up in the low 13000s, one can see where that leads traders until something concrete occurs in monetary policies. It leads one in a manic and chaotic bounce between levels with no clear direction.
For traders in the “today only realm”, I decided to stick with the latest swing as most of the significant Fibonacci levels aligned well with VWAP levels, and those levels tend to be rock-solid levels of resistance or support. If I were the 24/7 trader I used to be, then I could expand or contract it to make it fit the timeframe I operated in.
If MNQM23 can remain above 13228.25, it probably will make a run past 13275, which it already has, out perhaps to 13306. If for some reason, bears react to economic or world news negatively, the price could in fact dive right back below 13228 to 13194.50 and back to 13183.25. Persistent selling could take you right back to 13135.50 and perhaps down the scale back to 13104.25.
Based on European trading, it would seem that traders will be taking advantage of gaps in commercial holdings of MNQM23 to make another run to take out 13330.75. We will simply have to see how this market reacts at 0930 EDT to find the answer. NOTHING IS CERTAIN OR GUARANTEED.
I will as always look for volume and price momentum to align around those 2 standard deviation breakout points to the upside or the downside, and I will react accordingly.
I am not worried about the fact that I missed a great premarket trade, because there are hundreds of them that will occur in the future. That is how I picked up 33 NQ points long yesterday and continued on with other business after the morning session had passed. There were nice swings in the afternoon yesterday also.
That is it for now. I hope you have a great Tuesday in trading and a pleasant day overall.
More will come soon.
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
