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
It seems most of the critical economic news may come from Fed pronouncements this week and MNQU23 looks tired after the recent rally. Some are saying that it is the start of a new bull market, but others are mindful of the fact that the printing presses have been running wild since 2021. What most still do not understand is that the ability of Congress to increase spending by 20% of our total GDP as a nation per year over the last 3 years will ultimately destroy the economy. That is not “hard right” or “hard left” or whatever the bovine-scat-media narrative is. That is pure fact. That is indeed how the Roman Empire collapsed. There will be a reckoning of value as soon as interest payments on the debt become the top line item in the Federal budget, and that day comes closer at an accelerating rate.
The above subject could be the topic of a weekend piece, but for now, let’s look at the charts.
The Fibonacci scale used is wider because the price action itself is wider. The lows and highs were set as they were because, at the time of this writing, we had not seen a closing candle below the lows.
If MNQM23 can remain above 15361.75, it should fairly easily regain 15475.50 and head toward 15534.50 and 15809.50 by Tuesday.
If not, MNQM23 cannot get above 15361.75 then it should not take a great deal of seller effort to fall back beyond 15258.25 to 15199.75 and perhaps 15124.75 by Tuesday. We will simply have to see how traders react, either to assume the free money lasts forever or perhaps to take profits before pressing high (or lower) again.
I picked up (in simulation again) 45 NQ points long and I was taken out by a limit-sell order. I will continue with simulation trading today to hone the entry points a bit with the new methodology.
Have a great Monday and a great week!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
