The Spirit Of Labor Day
Continuing the spirit of Labor
Day, the indices are indeed laboring as
we start the September trading month with the only thing green or close to green
on my screen being the volatility indices. The VIX.X is leading the volatility
charge at +17% as the column goes to press and has found itself back about 40.
Other key psychological levels at play include the Dow sub-8400, the SOX.X
sub-300, and the S&P sub-900.
Our key 13-minute trends on both the Qs and SPYs — along with their E-Mini
counterparts — tell the story as we approach midday and are testing another leg
down as the result of overbought three-minute indicators during the late-morning
price consolidation period. Any long reversals on the lesser time frames should
experience resistance on the approach to the 13, and it will likely take a
combined three- and 13-minute turn to take some pressure off the current
decline.
Longer term, a quick glance at our weekly charts, which I’ve included below, put
today along with the last few weeks in perspective as we remain in a clear
downtrend heading into the fall, and we’ll need to keep an eye on any emerging
price vs. momentum divergences along with turns on at least the hourly chart and
preferably the daily chart.
QQQ
Tuesday
September 3, 2002 12:00 P.M. ET
SPY
Good Trading!