Supports Holding

Both the S&P and
Nasdaq markets are relatively quiet on this election day,

yet showing modest strength and holding north of key
hourly uptrend supports as we approach midday. Volume has been light as traders
appear hesitant to position too strongly in front of tonight’s election returns
and tomorrow’s FOMC announcement, so leaf-raking has already begun to work its
way up today’s “to-do” list at this end, as we await high-probability
opportunities. Keeping your eye on any emerging hourly price vs. momentum
divergence may also be worthwhile heading into the afternoon session.

Regardless of the election and economic shenanig … shenanig …, er backdrop,
our technical charts and triggers continue to provide outstanding guides to
trading opportunities, with Monday’s afternoon classic 13-minute reversal,
3-minute triggers, and 60-minute contra-trend trade resistance providing
textbook backdrop, entries and exits. 

Based on my mail, it seems as though many

course students
were on their game, so nicely done. Many of you noted the
lack of a confirming follow-through to the midday 13-minute long pullback, which
provided the heads-up to be alert for any trend breaks and confirming triggers
to the south. Traders actually had their pick of short entry options once we
broke the 13-minute trend, including pullbacks into the short support itself and
continuation triggers on either the 1- or 3-minute timeframes, depending on
one’s desired level of confirmation.

ES (S&P)         
Tuesday November 5, 2002  11:20 A.M. ET            
NQ
(Nasdaq)


Moving Avg Legend:
5MA
15MA
60-Min 15MA

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Charts ©
2002 Quote LLC

Good Trading!


Don Miller

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