Two Potential Scenarios For This Afternoon
The major indices continue their
respective impressions of the Times Square New Year’s Eve ball
as hourly trends continue to dominate the early
trade, on this last day of 2002. Trader reaction to worse-than-expected Consumer
Confidence figures served as lighter fluid to the hourly trend cinders and the
charts below tell the story.
Early trade opportunities have been aided by the volatile reaction to the weak
figures and have included both three- and 13-minute downtrend pullback trades,
along with a strong overreaction bounce play on the initial plunge into the
lower Bollinger Bands, which occurred simultaneously on three of our key
timeframes (3, 13 and 60).
Moving forward, traders may want to keep an eye on potential price vs. momentum
divergence on the hourly chart as we drop, to determine the strength of this
year-end morning sell-off. Specifically, any reversal to the north and
follow-through beyond the morning open will provide a bullish cup with strength
divergence at one’s back. In the meantime, there may be at least one decent
pullback short entry on the current 13-minute downtrends to consider, heading
into the afternoon.
ES (S&P)Â Â Â Â Â
Thursday December 31, 2002 11:00 A.M. ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
See
School and
Video for Setups and Methodologies
Charts ©
2002 Quote LLC
Good Trading and Happy New Year!
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