A Critical Period
Where do I begin?
Early intraday oscillations on the Qs have been outstanding as oversold
post-divergence bounces and trend continuations have combined to provide a
bounty for the focused daytrader on both the long and short sides. The morning
trade has been both volatile and liquid which has presented a picture-perfect
trading environment, and the 13-minute 15-MA continues to be a rock solid trend
guide.
We’re entering a critical period as we
approach midday as the Qs are testing a double bottom with strength divergence
on the 13-minute period, and all eyes are now on the lesser time frames to see
if we turn back up or create yet another extension leg down. We remain severely
oversold on longer-term time frames, yet respecting downtrend supports as
resistance on longs and supports on shorts until violated remains the low-risk
ticket. Should the 13-minute stranglehold reverse, there is profit potential
beneath the hourly downtrend support given the wide gap.
Friday February
22, 2002 12:30 PM EDT
Good Trading and
Have a Great Weekend!