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
Despite the higher than expected PPI numbers, driven by energy, MNQZ23 continued to press higher, as traders seemed not to care about the result. The Fed also indicates that, based on this issue and other ways inflation hits this economy, that it will consider another rate hike.
Meanwhile, businesses put their cash to work in banks and in short-term treasuries). One of my businesses did a much smaller version of the same thing. While that cash is idle, there suddenly is interest income (even if it is below the true rate of inflation). There is likely more pain to come to American consumers and citizens as the unwinding of the ZIRPs (zero-interest-rate-policies) unwind, but only time will tell. I may have a bit of time this weekend to write about this, but for now, lets go to the charts.
If MNQZ23 can rally above 15707. it should easily be able to rally to 15719.75 and beyond to 15771 and perhaps 15836.50 by Monday. If not, there could be a selloff back to 15647 (price supports near that area), and if sellers get aggressive, any support level 15603 back to the 15531 is possible because of yesterday’s morning rally being retraced. Beyone that, if sellers press MNQZ23, it could fall back to 15479.75 and even 15414.25 by Monday. I have no idea if an unusual (high or low) Michigan Consumer Sentiment number will push bulls or bears, I will simply rely on my trade plan.
Yesterday I caught the initial breakout for 12 NQ points per contract profit long on a single trade. This weekend I will test out another way to analyze breakouts for staying power, and as time goes on I will discuss that. I have tons of things to do this weekend, but somehow I will manage to write. I will get to part 3B of Setting Up The Trade, with another way to look at volume.
I hope everyone has a fantastic Friday and a peaceful weekend!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
