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
There are tons of things to worry about lately. China’s banking system threatens to damage future business growth as banks lose net margin from real estate. China cannot print money at will. something it could do if the yuan became the world’s reserve currency. China seems to want to begin its conquest of Taiwan. As WSJ’s server goes down, I was going to mention the fact that $NVDA (Nvidia), the darling of AI, faces a challenge with regard to future earnings. Michael Burry, of “The Big Short” fame, has shorted the markets again. Please note in this article what the overall performance of his calls has been. He is, of course, hedged, but has has flipped the switch a few times and made a fortune.
The point is, no one really knows what happens next, but one can get some decent information by studying the charts. Let’s do that now.
If MNQU23 can remain above the 14785, it can probably re-climb the walls back to 14855.25 and 14922.25 by Tuesday. If not, it stands a chance of falling back to price support around 14706. Failing to hold support, should sellers become aggressive again, it could pull back below the VWAP at 14677.75 and fall to perhaps 14609.25 and even 14556.50 by Tuesday. What is a little scary about that is that once we break below 14500, it is possible that this market could easily give up 500 more NQ points, as the rally from 14000 to 14500 happened pretty quickly, if one goes back to early June. We are still in the summer doldrums, but only time will tell.
A mental error on my part cost me a 44 NQ point loss on Friday, as I did not move a stop in the proper sequence. I have made note of that error and will do what I can to prevent such an error in the future. As we get into the series I started this weekend, I can discuss that in greater detail.
That is all for now. Have a fantastic Monday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
