Why All Eyes Should Be On Divergence
The major indices continue to hold onto hourly support as we approach midday,
with the gap down providing some resistance to the north as the market catches
its breath from the last day and a half. All in all, it’s been a choppy
morning with one-minute two to four point ES trends the norm, while the markets
work off their current timing conflicts.Â
An afternoon break above 13-minute
resistance may provide some further hourly extension, yet given current heights,
eyes should remain on any emerging divergences in terms of managing intraday
long positions, as the music can stop quickly with resulting air pockets in true
Wile E Coyote fashion, as occurred just prior to Wednesday’s close.
Nevertheless we’re currently in our “TUBAT” * mode on the hourly until we see
evidence of a break, which has been a strong morning guide for scalpers looking
to leverage off the immediate tailwind.
* Trust until broken and tested
ES (S&P)Â Â Â
   Â
Thursday June 5, 2003 11:50 AM ETÂ Â Â Â Â Â Â NQ
(Nasdaq)
Moving Avg Legend:
15MA 60-Min 15MA
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