A Hint Of Resolution

Yesterday’s trade — while illiquid — did provide some exceptional short
entries off daily short support as traders had their pick as to taking
yesterday’s one-, three-, or 13-minute triggers, or today’s hourly break. All
eyes now turn to the emerging hourly downtrend support and its angle, which must
hold to provide more downside on the daily.

As of midday, both 13-minute and hourly trends are short in both the Q and SPY
markets, with the only potential fly in the short ointment being an afternoon
reversal on the 13 which would put us back into another conflict, although such
a 13 vs. 60 battle should be resolved much more quickly than the hourly vs.
daily battle we’ve been discussing for some time now.

Given the gap down, the top low-risk trade opportunity occurred shortly after
10:00am ET where we had a textbook one-minute cross in the direction of well
established three-  and 13-minute downtrends, and school students are hopefully
staying on the sidelines until the next trigger presents itself.