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
The craziness continues. As Joe Biden presses on with his goal of a world war potentially against Russia, the Fed seems unable to understand what is happening on Main Street with its interest rate policies. In spite of all that, traders think QE will last forever and institutions and individuals continue loading up on equities whether or not the valuations are out of control, which in many cases they are.
We may get into that more this weekend. For now (and because of a couple of technical difficulties), let’s get to the charts.
If you will remember a couple of days back, I stated it was possible for an AB=CD bearish setup that could hit and perhaps curtail the rally. What we actually got as those previous highs were taken out, was this, and most of the completion and more was done yesterday, as there is very little commercial activity among large traders at these price levels (that is, there is a vacuum for which prices can race higher). I left that chart out of yesterday’s analysis:
The question is today, as it is Friday and there is light economic data on the docket, will traders square positions and leave, or drive prices higher? We will simply have to see what happens.
If MQNU23 can remain above 15581.50, it has a shot at going higher into the vacuum and can exceed 15741.25 to perhaps 15799 to 15872.50 by Monday.
If not, there could be a fairly rapid (depending upon how aggressive selling would be) pullback to around 15574.50 ( near the VWAP line at 15581.50). Failing that support, you would see a pullback to that minor swing low at 15529 and perhaps back to 15471.25, very near the 15459.75 VWAP line.
I picked up 22 NQ points per contract yesterday on an expansion breakout long.
I may devote this weekend to showing how this setup works and sort of pull the curtain up on how I approach breakout trades in more detail. I have the new platform running in a single timeframe now. I just need to add two additional ones to it, which I will complete this evening.
Have a fantastic Friday and a great weekend!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
