An action packed session trading the US markets for emini indices and commodities using volume price analysis and the Quantum Trading tools and indicators. And an interesting one for many reasons, not least as it was one likely to be impacted by a speech from Vice President Mike Pence over the current trade wars and expected to be rather more emollient.
The longer term picture for US indices is one of congestion on the monthly charts and a phase of price action which has been in place for almost two years. Whilst indices lack longer term direction, for intraday traders each day brings new opportunities, and today was no exception with indices falling sharply at the open before developing a strong reversal as the webinar started. This was all reflected in related markets, with the US dollar rising strongly on positive fundamentals, with strong buying of the Japanese yen reflecting the initial risk off sentiment, with gold rising also. As the webinar began, it was clear risk off sentiment was waning, with the Japanese yen moving away from the overbought region on the currency strength indicator and starting to fall across the yen matrix with gold stalling. This was the signal for equity markets to find buyers with volume price analysis leading the way on the faster time frames, with the moves gaining momentum and developing a solid trend higher on the faster time frames, and supported by the Quantum tools and indicators.
The focus in the session was on the NQ emini, but it was interesting to note, of the three primary indices, this was the strongest, with the ES emini following, but the YM languishing and relatively weak.
As always, focus is on the chart to identify where the trend might pause or move into congestion such as at the volume point of control, high volume nodes, or price resistance and support regions on the accumulation and distribution indicators.
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