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 the wheels might have come off the earnings bus a bit after Wednesday’s session, and selling continued in Asia and in Europe after selling began at the end of the US session.
There are concerns over average working hours in the US economy, the prospects of leaner future earnings at Tesla ($TSLA) and Netflix ($NFLX) because of extreme price cutting and the potential lack of Hollywood content via labor strikes respectively have given a sour turn to the current QQQ rally.
The inflation story (and potential famine story ) became a bit more negative as Russia attacked Ukraine’s export terminals yesterday. US drought conditions have put pressure on wheat crops this year. The theme of inflation on the ground in main street America persists yet again.
I may discuss this at greater length this weekend. For now, let’s look at the charts.
Should MNQU23 rally beyond 15990.50, it still has a chance to rally past 15999.75 to reach 16043 and even 16097.75 by Friday. That could be a tall order given the breakdown in price last night, but nothing is impossible given the bipolar nature of this market.
If it does not, then chances are MNQU could rally back to as high as price resistance around 15966. If it cannot, then it is possible for it to sell off to 16798 and potentially to 15743.30. If that happened, there would be a bearish AB=CD pattern completed there shown by the opaque white dotted lines.
We will see how things develop today. I am not going to give a prediction for where it goes. I will simply trade my plan and check the result.
3 trades yesterday resulted in a 1 NQ point loss, as I misinterpreted one of the signals, erasing a 21 NQ point gain. I shorted MQNU23 late in session yesterday to a set target that erased all but one point of the loss. As I get used to the new setup, I will not make those errors. The key benefit is that I am not locked into a trade that gets the boot from a stop loss. Equity protection is greatly aided by the new setups. I will saddle up again today and see what happens.
That’s it for now. Have a profitable and happy Thursday everyone!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
