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 news is crazy around the globe. China has banned the use of Apple iPhones by government employees to punish American and foreign technology suppliers. If that drops to the consumer level, and perhaps the manufacturing level, can you imagine the pain that causes for U.S. technology providers? Do you have X or Musk-er up for sale yet, Elon? You could lose that Shanghai facility one day :D. Elon even borrowed $1 billion from SpaceX to fund purchases without selling shares.
German factory orders are collapsing, a clear sign that recession could be spreading into the EU. Current dollar strength is causing shock waves in Japan and the PRC where currency valuations are trending toward historical lows versus the U.S. Dollar. All that is happening while the Fed’s desire to press interest rates higher puts pressure on U.S. regional bank assets.
Personal interest payments are skyrocketing for American consumers whose savings are depleted, and energy prices, particularly crude oil are on the rise again. Housing purchases have also declined at rates greater than 2008. And even equities are at historical premiums in terms of price to earnings growth.
Does this make you tense? Maybe you need a picture of a puppy. Here you go:
Now, let’s get back to discussing the charts.
If MNQU23 can remain above the 15440.50 VWAP line, then it has a shot to run back to 15500 and 15516 and if it breaks through that VWAP resistance, it is a very short journey (given the depth of the previous selloff to 15556.50 and even previous 15587 swing high. Given the gap in commercial holdings above that high, it is possible that 15627.25 and 15678 are reachable by Thursday, if buyers recapture momentum.
If MNQU23 cannot hold 15440.50, then it could be a short trip back to the swing low at 15438.50, and all the way back to 15398 and 15346.75 by Thursday if sellers regain the momentum in this market.
I have no idea what will happen today, but I will remain at watch. I got bounced on volume spikes for a loss 25 NQ points (a combined total for two long trades, which is my limit under the new trading entry method of my trade plan). We shall ride the pony again this morning as long as the trades match the trade plan.
That is all for me today. I hope you have a happy successful and profitable Wednesday!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
