Fibonacci Price Scale With Target
First a delayed promise kept from yesterday’s post, the balanced view of market conditions from David Keller on Stockcharts dot TV.
I had a network issue this AM that compromised one video card and should be resolved sometime today. It cut my time to write, but I will do all I can by using the chart above and what I discussed yesterday ( something YOU should read).
It appears that despite lackadaisical trading in Asia, Europe has tried to take MNQM23 higher as we head to the 0600 EDT hour, even though there is a bit of weakness in bullishness as this goes to print. The spike rally last night could be traders wanting to test the waters for old ground prior to new highs (which are indeed possible even if not likely in the end) should the Fed cut rates or pause on Wednesday. Again, Congress opened the market casino again when it allowed spending to continue at pandemic (“covidiocy”) levels and that beast could run wild until beaten back by Fed interest rate increases.
I have no idea what will happen. All I am going to do is look at the charts for guidance (using a slightly expanded Fibonacci scale because of last night’s price action.
If MNQM23 can remain above 14499, then the odds are decent that a rally can take out 14688, with bullish targets of 14740.25 and 14806.50 within the next two days.
If not, MNQM23 could slide back to 14496 if selling ensues, with targets of 14443.75 and 14377.25 possible in the next two days.
There is more room above (in terms of VWAP line interference or resistance) than there is room below (from previous WVAP line support). Does that mean the market will rally to that 15,000+ area soon? I have no idea, but the potential for trend days higher could be in order. One thing is certain though. NOTHING IS CERTAIN. If your trade plan does not manage risk and contain its targets, you could get blown up in your trading. Be aware of that in the days ahead. The criminally insane in Washington know how to roil markets, and we could see that in the days and months ahead.
As I said I might, I traded in simulation Friday and scored 74 NQ points on trade using some statistically adjusted techniques for entry I have learned from the platform provider. One day is great, but I will continue to document how well it works over time.
More is coming soon. I should be back in good order tomorrow if everything can be pulled together. Have a profitable and happy Monday everyone!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
