Not Every Level Lets You Go

We're sitting right below multi-day VWAP right now.

I want to talk about this level specifically, because it does not behave the way people think a level behaves.

You break a 200-period moving average and that kind of helps you. Path of least resistance to the other side.

Multi-day VWAP is a completely different animal. You break it and it pulls you right back in.

There's a word for what this level does to you and it took me a second to find it, so let me show you the chart first and then I'll tell you what it is.

Start with the moving average, because that one works the way you'd expect.

You break a 200-period and that kind of helps. It opens up the path of least resistance to that other side. And if it holds instead of breaking, it creates a concrete wall, kind of hinders price. Either way it's a barrier to break. It stops you or it lets you through.

Multi-day VWAP can be kind of like a magnet versus a barrier to break.

You break these levels, especially at the close, and you'll see it just keep pulling. It just keeps getting attached.

So this multi-day VWAP may be a little bit of an issue for us, because again, you have that pull.

This level has, what is that. What am I trying to say. Co— you know what I'm saying. Issues.

Clingy. Clingy is the word.

Codependency. That's what it is. Codependency problems. It's like when kids don't want to leave their parents for kindergarten. Somebody in the room said separation anxiety and yeah, that's exactly it.

So if you're taking a break of this level, expect the pull. Especially into the close.

Rock On,

Voz

P.S. Big day of earnings and the FOMC tomorrow. I will be live with Mark for State of the Market to give you a little pre-game market breakdown. It’s free to join the session, click here to save your spot.