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 all the economic tumult and confusion, MNQZ23 continues, at least on the hourly basis, to resist the urge to swan dive. There are still nightmarish scenarios for consumers and producers, as oil supplies tighten ( as one would expect when the US commits energy suicide by elite dictate) and oil move again toward $100 per barrel. The American consumer is considered unflappable, if you believe the Wall Street Journal, but their personal interest payments are out the roof, and the person on the street is feeling the pain. Remember that oil will increase prices across the entire supply chain, since it is a key component of cost in manufactured goods and agriculture.
And if you think China’s economy is a bit in tatters, you ain’t seen nothing yet. As the U.S. Dollar rises in strength with its rate increases (even though its banks are paying for it, meaning of course that YOU, the taxpayer will ultimately foot that bill), a most bizarre thing has happened. The yuan has become the latest currency used for the carry trade, given its weakness, replacing the Japanese yen!
Wednesday, when the Federal Reserve makes its next interest rate decision, there will probably be volatility attached to it, since so many of the topics I mention will be impacted by it. I have not even discussed U.S. housing, but I will leave that for another time.
Let’s look at the charts.
If MNQZ23 can rally above that 15625.50 VWAP line, then it should have easily broken through the 15620 swing high, and could rally to 15678 and even 15752 by Tuesday assuming there is aggressive buying.
If not, then it is possible that key support could be found around the 15558.50 VWAP line (seen in yellow but not fully marked, which it will be tomorrow), or perhaps near the 15538.25 area that would basically represent the 50% retracement of the most recent hourly bullish swing. If that fails, then odds are pretty good that the 15416.75 VWAP line and the 15406.25 swing low will be tested by sellers. Failing to hold those levels could lead to MNQZ23 trading at 15340 and perhaps even 15274 by Tuesday.
As we have seen in recent days and certainly the last few weeks, volatility has increased and price swings can and probably will be dynamic as Wednesday passes. That is why I am watching my trade plan for look for opportunities like Friday. If you haven’t read about what happened to me Friday, you can read it here.
That is it for me today. I hope everyone makes money today and has a positive, profitable, and happy week!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
