This is my own analysis of MNQU22 (Micro Nasdaq 100 Futures Chart Expiring in September 2022). When Michael Burry and other hedge fund and investment managers think that the correction is “half over”, how can one define that exactly.
Instead of repeating my occasional “Death Disaster and Destruction” forecasts, I used to make after stock indexes rallied to major highs. This time I took the monthly continuous futures chart of MNQU22 and added volume-weighted-average price lines and Fibonacci price scales to see how well the VWAP levels and Fibonacci price levels lined up. I also estimated the full correction based on the Burry estimate (measured by the all-time high in November 2021 and the 7/8/2022 low) and then performed a similar measurement from the October 2008 low to the November 2021 high.
What resulted is something insightful. I may do a later analysis for weekly price levels in another post, but I wanted for this weekly blog post to observe what could be the outcome of a major correction in MNQU22.
There is also a podcast with Michael Covel and Ben Hunt which deals with the gamification of equity and crypto markets which somewhat fits this analysis. It is worth a listen if you get the chance.
More will be coming soon. Have a fantastic week!
