My ‘Wish-List’ Setup Moves Closer
Before we look to the charts, I’d
like to start with a bit of a soapbox on this morning’s TV babble.Â
Here’s how one of the leading commentators, who
shall remain nameless, began her opening (OK, you can guess the name)… “Even
though we’re likely to move down today and throughout tomorrow …” Wow! Just
when I think the press can’t outdo themselves, they toss up another gem. It
must be a new and improved crystal ball that can interpret 8:30 a.m. ET futures
not only for the next seven hours of market action, but now for the next two
days. Now while my tube is turned off during the trading day, I do
occasionally have it on in the morning for news and a bit of comic relief, and
that particular comment has to rank up there with recent classics.
Back to the reality at hand, the S&Ps have surpassed yesterday’s high and the
Nasdaq is testing its Tuesday lid as both markets have broken into 13-minute and
hourly uptrends as we approach midday. As a result, the markets are moving
closer to yesterday’s longer-term “wish-list” setup of a bullish hourly cup with
an emerging 15MA trend support handle base which might serve as a potential
entry and stop premise. As I mentioned
yesterday, my preference would be to see ES first attack the 910-915 range
which would provide a more symmetrical cup, and I’d also prefer to see an
increasing angle of the hourly handle base support reflecting the sustaining of
higher highs and lows.
Whether scalping the lesser timeframes or attempting to position longer term,
resolution of the hourly chart going forward should provide traders of both
styles with effective guidance.
ES (S&P)Â Â Â Â Â WednesdayÂ
December 11, 2002Â 11:30 A.M. ETÂ Â Â Â Â Â NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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Good Trading!
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