Bend But Don’t Break
The Qs are trading off yesterday’s highs as
traders cashed in recent profits on the release of today’s
consumer “unconfidence” data, and we’re giving key
hourly support a strong test. “Bend but don’t
break” would be the best way to describe the testing
process thus far, and which side of NQ 1600 we trade on as the
afternoon progresses may be key in determining whether we
correct further. I’ll also be keeping an eye on the 60-minute stochastics on any further climbs to gauge the true
strength of bounces from here, which may also provide clues as
to whether our daily uptrend remains intact.
November 27, 2001Â 12:10 PM EDT
(1)
Approx. Equivalent QQQ Price
In
light of various discussions I’ve heard recently along the
lines of “we can’t
be up here,” I thought I might pull up a monthly chart of
the NDX to remind all of us from whence we came.Â
Sometimes it indeed helps to back up to see the forest, or in
this case, the city.
Good
Trading!