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
I was too busy to realize that yesterday was Juneteenth, so no trading happened for me, but having set up the charts for the week, you can now see the gaps between the primary VWAP lines are quite large after what happened last week.
As usual, when there is no budgetary restraint and no limit to printing money, the financial press (and in particular Bloomberg) now seems concerned that the market has gone too far (something I have worried about since 2009 when rates were cut to zero).
I really think the primary fear that might be in the back of traders is tomorrow’s inflation data release. We know there will likely be a strong reaction, but as we have seen recently, it gives traders a profit edge based on the moment’s volatility but still does not shake up the total trend. The really from early year lows have already exceeded the 78.6% retracement of the previous major 2022 downswing in MNQU23 so odds increase (though do not guarantee) a fresh set of new highs in coming months if the “free money” continues flowing.
All I can do is look at the charts to figure out direction possibilities.
There are wide gaps between VWAP lines, yet even with the selling that occurred within the 0400 EDT hour, MNQU23 is not yet oversold, though all the spreads with volume and price were negative. The lagged price volume indicator (ratio) was heading back up to zero though.
If MNQU23 can remain above 15105.50 and 15168.75, it has a shot and heading back to price resistance around 15253.75, and a rally to 15306.25, perhaps even to 15343.75 and 15391.25 are possible by Wednesday.
If not, 15131.25, 15105.50, and 15083.75 are next by Wednesday if sellers predominate.
We will simply have to watch what happens over the next couple of days. The casino operators (the Federal Reserve) could make statements, the world could go nuts, or something else could happen to cause greater volatility. All we can do is follow our trade plans and wait for the next appropriate entry opportunity.
That is it for me today. Have a profitable, happy, and productive Tuesday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
