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 NASDAQ 100 and MNQZ23 continued to rally, even as things still seem a bit crazy. The United States continues to fund both sides ( or perhaps all four if you include Iran ) in the Israel-Gaza conflict while Russia and China support the various Palestinian causes. It does seem a bit curious that the WSJ called both of the latter nations in that last sentence as “authoritarian regimes” and our own country’s DHS engages in censorship of any opposition. But then again, who’s counting?
The EU (and the USA) are suddenly concerned that corruption in Ukraine will prevent that nation from joining NATO. Perhaps that wasn’t an issue until the collapse of FTX. With the conviction of Sam Bankman-Fried, the list of participants could be disclosed, including his mother, who was a bundler for the political class. If that points back to Washington, D.C., then we may have both the sources and uses of the corruption, and the neo-cons may not have a finger to punch Putin in the eye with, something they’ve dreamed about since the fall of the Berlin Wall.
The WSJ has now decided that spending is bad after credit facilitators leave the auto industry, the latest being Goldman Sachs unloading the GM credit card. Spending is indeed the life blood of the American economy, and spending declines would tend to lead to recessions, particularly, as I have mentioned in the past, when consumer credit is at all time highs while consumer saving is collapsing.
Bloomberg suddenly believes that the earnings recession is over, somehow ignoring, as I discussed a couple of days ago, that price increases have a significant effect on GDP. GDP can rise as sales can increase from price increases alone. Oil could be signaling a demand decrease, as demand is even dropping within China. The real slump in purchasing and resulting economic slowdown could indeed be coming if spending is constrained by savings and limited wage increases. We will probably hear about this at 0915 EST, when Jerome Powell speaks on Fed policy. That could be interesting viewing perhaps.
Let’s get back to the charts.
If MNQZ23 can remain above the 15388.50 VWAP line, it has an excellent chance to rally above the swing high at 15412.75, perhaps extending to 15477.25 and 15559.25 by Thursday. If not, there is price support near 15209.50, but if that fails, the swing low at 15175.75 will be tested and if that support is broken, prices could fall back to 15111.25 and 15029.25 by Thursday. Gaps in commercial holdings are wide on both sides of current price action, so anything can happen.
I picked up another 17 NQ points long yesterday and the extra trading contracts got stopped out by pretty wild volume swings early on, otherwise I might have participated in the broader move higher. I did ring the cash register with the rest, so I will see what happens today, knowing I protected my trading account against excessive risk.
Have a fantastic Wednesday everyone!
Today’s Economic Data Courtesy of Trading Economics dot com. Be sure to refresh the date at the top left.
