Price, Price Spread, Lagged Price/Volume Spread, and Binary Price/Volume Indicator
Fibonacci Price Scale With Target
We’re still slightly handicapped so only two charts today, but I posted a meme from digitalmomblog dot com. What day is it? IT’S FED RATE ANNOUNCEMENT DAY! (There’s PPI and related inflation data too, but the potential neutron bomb to volatility is dropped at 1400 EDT). Market participants are divided over what to do as shown by this Wall Street Journal article. Does this article mean that the Fed will continue to raise rates (as I suggested was a possibility) or will the fear of steep market reaction and problems with regional bank stability force the Fed to pause?
I have no idea. I also know that YOU have no idea either unless perhaps you are a Fed governor. (I noticed there seemed to be no dot gov email suffixes in my email list, so I am safe in that assumption). Assuming anything make an…you know the rest of that sentence.
Let’s get to the charts.
If MNQU23 remains above the 15057.50 VWAP line (the top one in yellow), there is an excellent chance that 15151.75, and the rally can press on to 15189.75 and 15238 by the end of Thursday.
If not, it should be a quick trip back to 15012 if sellers are active, and beyond that, prices could easily slide back to 14974 and 14925.75 by Thursday if selling remains active.
The thing to realize is that there is blue sky above (even into 17304 and higher if the phony liquidity-driven rally continues (its phony because nearly all the money going in will be printed)), and if not a ride back into the high 13-handles can be a rather quick reality if a selling contagion hits again). I shall not predict the outcome, instead, I will follow my trading rules and trade and scale as always.
The simulation continued yesterday with another 70 NQ points profit on a long trade. The stop was not threatened a bit under the new regime I am testing. So far, so good. I will comment more on that later.
I have to run to get other things done today (including installing the piece of the network that will arrive today). Have a wonderful Wednesday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
