The Buffalo Trader and his lazier relative to the right are basking in the sunshine of continued QQQ and MNQM24 gains over the last month. In spite of the current problems with interest rates and with the specter of continued and perhaps even increasing inflation at least at the PPI services level,. Traders, retail investors and institutional investors all think rates will be cut, whether they are or not.
According to Google’s new (and quite scary, if you ask me) AI Summary:
“As of May 14, 2024, the US Producer Price Index (PPI) inflation rate for the previous month was 0.52%. This is a measure of the average price changes that domestic producers receive for their output. The PPI for April 2024 also saw increases in prices for final demand services (0.6%) and final demand goods (0.4%). The core PPI increased 3.1% year-on-year, which was the largest gain since April 2023.”
The point is, there is still coming inflation baked into producer prices that will show up in coming months in CONSUMER prices. I will not beat this horse to death, but until printing and spending stops, these numbers will continue over time to worsen. Cutting rates only maintains the asset bubbles of previous quarters and years.
Despite the potential for economic struggle and kinetic world war, NQ, QQQ, and MNQM24 still want to push higher!
Watch this video:
Timeline:
0:00 - 3:14 Introduction to the monthly MNQM24 chart and the concept of confluence of Fibonacci levels.
3:14 -5:44 The target analysis using the monthly MNQM24 chart
5:44 to 11:31 Weekly MNQM24 chart and target analysis and a summary of the video.
If you can, watch the video. About 40% of you did last time and that is a record for this blog. It is helpful in understanding how target analysis can be done using Gartley’s techniques.
Charts:
Long-range price target analysis using the monthly MNQM24 chart
Short-range price target analysis using the monthly MNQM24 chart
Weekly price targets for MNQM24 with the weekly chart:
We still seem headed toward 21224.75 to perhaps 21767.75. The level of craziness in foreign entanglements, interest rate policy, foreign and domestic bond and currency markets is still set to 11 in “This Is Spinal Tap” terms. We could have a three or four front world war, or things could settle into doldrums. Either way, the markets like NQ will crack first. So far, however, they’ve not cracked at all.
More will be coming soon. If you have questions, leave them in the comments.
I greatly appreciate you continued support of the Buffalo Trader’s Writing Desk. I will return again at least next month with deeper analysis!
Have a fabulous rest of your Memorial Day weekend!
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