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 U.S. economy still seems to be balancing on the head of a pin. Consumer spending is robust, but Americans are depleting savings at a rapid rate and putting $1 trillion dollars on credit cards. Employment cooled off a bit recently, a potential sign that rates may soon decline, but the Fed presses for higher interest rates, and the pain is only beginning for consumers. That same situation is true in the EU.
As the SPR dries up and prices spike through reductions in oil output, energy prices crush consumer discretionary spending. In the U.S. government’s seeming insatiable need to crush its middle class, people are taking defensive measures, as discount good stores indicate.
We will find out how unemployment rates may affect Fed decision making, but there is still a long road ahead for the consumer as rates will remain high in the foreseeable future.
Instead of fretting about the economy for the moment, let’s look at the charts.
MNQU23 basically idled overnight, though buyers attempted to assert themselves in Europe after 0300 EDT. If MNQU23 can rise through the 15556.50 VWAP line, the it should have a reasonably easy to rallying to 15606.75 and beyond to 15647 and 15698.25 by Monday. If not, there is price support around 15516, but if that fails, it could be a quick trip back to 15458.50 and potentially beyond that, back through the 15440.25 VWAP line, and back to 15418 and even 15367 by Monday.
I cannot predict what employment data will do to MNQU23 prices today, but there is an equal amont of movement possible (250 NQ points above the current trading range, and 250 NQ points below it). We will just have to see how things shape up as 0930 EDT approaches.
Volume spikes, whether algorithmic or not, kicked my butt for a 25 NQ point loss yesterday per contract. I may actually discuss that as an addendum to last Saturday’s Part 2 of Setting Up The Trade. I can further adjust entry tactics to mitigate such a thing happening. Hopefully I can get to that this weekend. I have a hefty schedule of things to get done, but somehow I will get there.
That is all I have for now. Have a fantastic Friday. Go have fun and make money trading!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
