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
MNQU23 took it on the chin partly on $APPL news I mentioned yesterday. Today, the news for AAPL 0.00%↑ seems worse, and perhaps folks like Elon Musk might take note of what the PRC is doing to pressure $AAPL’s foreign sales. Hwawei is about to introduce a 5G phone and the PRC government will likely back it ot the hilt.
And when you recall yesterday’s article about America’s commercial real estate”doom loop”, the PRC is not far behind.
There is more troubling news in the U.S. economy, but I may cover that this weekend.
Since my time is limited this morning, let’s get to the charts.
After the morning selloff, MNQU23 recovered slightly in the afternoon, only to be pelted with further selling in Asia and in Europe up until 0500 EDT. It seems to have paused around that 15300.75 VWAP line, but we will simply have to see how things open at 0930 EDT.
If MNQU23 can rally above 15300.75 then it has a shot at getting close to the 15374 VWAP line and perhaps to 15376.50. If buyers regain control of price action, it could even rally back to 15404.50 and even 15440 by Friday. Beyond that there is a ton of commercial holdings between there and 15484. We would have to see how strong buying is for MNQU23 could rally there by Friday.
If not, because of lack of commercial holdings below the swing low at 15274.75, it would be a fairly quick trip back to 15258.75 and beyond to 15193.75. We will just have to see how strong the seller momentum is, and as always, the result will depend on who shows up.
If you look at the binary indicator chart, you will see the double bounce that made take a 25 NQ point loss again when going short. I will discuss how that happened on Saturday, and the one last step I will add to the process (I am hoping I can get a programmer’s help by then, but if not, I should have it next week). You can see that the bar I shorted was indeed the first breakdown point leading to the selloff. What you did not see is how tightly I held the short stop loss, which smacked me across the face again before the price began to nosedive.
I will see if there are trades that match my trade plan today, but if not, I will return on Friday. Have a fantastic Thursday everyone!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
