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
I took the liberty of expanding the Fibonacci scale to account for the gaps that could occur if buyers go crazy jumping into the market on a breakout above 13330.75, which MNQM23 did last night. In the 0500 EDT hour, this market seems a little overbought, but as New York and Chicago open up, things could reverse to the upside again. NO ONE KNOWS FOR CERTAIN. ISM data could drive the market early, but otherwise, I would anticipate that price action will be basically jockeying for position as the Fed rate announcement comes Wednesday afternoon. If you read yesterday’s post (and YOU SHOULD HAVE), you can see the jam that Jerome Powell and the Governors (a great name for a country music group) are in. The direct result of at least 28 years of goofy lowering of rates and at least 52 years of U.S. Dollar currency value destruction has led us to the intersection of Banking Collapse Avenue and Hyperinflation Boulevard. I am assuming that Gramma Yellen and Jerome Powell are operating under the credo of “Never let them see you sweat.”
Under the expanded scale (which would include tomorrow’s action) if MNQM23 can remain above 13330.75, it has a shot at 13367.75, 13421.25, and 13490. The VWAP resistance kicks in around 13600 if buyers really get active. All that could happen by Tuesday.
If that doesn’t happen, I would imagine that MNQM23 could pull back to around 13228.25, and then, if sellers press, the 13168.75 low could be tested, and a target low of 13114.75,13077, and if the prices can fall back through the maze of VWAP lines that end around 13055, then it could hit 13046 as a low. This too could happen by Tuesday if sellers become active.
I got bounced for 25 NQ points on Friday as I tried to get long, and that was kind of the nature of volume activity last week. I am undeterred by that but will continue to remain cautious until volume best reflects the price momentum I see on the charts, regardless of direction. With all the craziness in the world of economics, geopolitics, and social insanity currently, I will simply rely on trading what I see in the charts.
More will come soon. Have a happy and profitable Monday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
