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 Target
It seems that the financial press now believes that inflation is dead and the sky is the limit ahead of inflation announcements at 0830 EDT and ahead of Fed prime rate announcements coming tomorrow. Inflation data hits today, and that could roil the market and be a precursor for tomorrow’s action.
Well is it over? I don’t think so, as the unlimited spending caps are still there, the Saudis cut oil production while the US sits on its hands and basically goes begging for energy as it commits energy suicide with its green energy initiatives.
What is possible is a swing toward deflation as the economy slows a bit. These markets react to the ephemeral often, so ANYTHING is possible. The inflationary inputs are all still there and eventually, they work through the economy.
I will simply see what the charts say, and go from there. ( I did roll the contract today and will mark up the new WVAP lines as the days progress).
Markets continued to rally in Asia and in Europe until the beginning of the 0500 EDT hour. Markets are extremely overbought, but that could mean becoming even overbought-er as today progresses. I am not going to guess, I will look at what volume, volume profile, and price momentum allow.
We are miles above the 14779 VWAP line, so selling pressure would have to be put on this market to drop back below that line (and who knows what tomorrow brings?). If buyers take hold, then a rally back to 15084.25 and beyond 15108.50 and 15139.25 and beyond by tomorrow.
If not, and sellers dominate, then we probably do breach that previous swing low at 14995.25 back to 14971 and 14940.25 are possible (or even below that) by tomorrow’s close.
We will simply have to see what happens at 0830 this morning and beyond into tomorrow. I remain watchful and don’t care which way it goes. I only want to be on the right side to earn a profit. I did a simulation trade long a 71 NQ profit per contract yesterday with the new technique. I will continue to test this week.
That is all for now. Have a fantastic Tuesday in every aspect of what you are doing!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
