What To Do With This Narrow Range
The morning trade
has been light in both major indices, with trading ranges about the width of my
post-blizzard sidewalk. Given the
conflicts between the hourly uptrend and daily downtrend, the rather lame
trading action is certainly no surprise, with the hourly chart thus far proving
a headwind into any early short attempts. As usual, the three and 13-minute
combined trend indicators have been helpful in keeping folks on the right side
of the early intraday trades, with the hourly encouraging short-term scalps on
shorts until and if broken.
Friday’s successful test of hourly support — which we had been awaiting and
discussing ad infinitum in recent columns — combined with confirming
reversal triggers on both the three and 13 minute charts provided a nice 30
point rally from the confirmation signals. Trader patience and foresight
continue to rule.
Keeping the afternoon trade on the lighter side given the various conflicts
would seem to be prudent until at least the current 13 vs. 60 conflict is
resolved.
ES (S&P)Â Â Â Â Â
Wednesday February 19, 2003 11:00 AM ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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