Cowabunga!
Cowabunga! Talk
about implosion as the markets opened with about as much conviction in response
to the illiquid overnight gap as some have to Hussein’s latest change of heart.
Within minutes after open, both the SPYs and Qs responded to the sublime gap by
initiating both one- and three-minute short triggers — which students know is
the low-risk way to enter gap fades — and have barely looked back.
As we go to press, the S&P futures are 32 off their Globex high and the
Nasdaq futures 35 off the high, with the ETFs, of course, in lockstep. Moreover,
both indices are showing bearish inverse cups on their respective 13-minute
charts, which will remain intact unless either can bust through its 15-MA short
support (yes, my purposeful term for long resistance) of approximately 22.70 on
the Qs and 89.50 on the SPYs. And, oh yes, the SOX once again hit a new yearly
low despite last night’s
(
MCHP |
Quote |
Chart |
News |
PowerRating) earnings guidance that momentarily placed
visions of 1999 in some retail traders’ minds — momentarily, as in, if you
blinked, you missed the early strength.
Sarcasm aside, keep an eye on those 13-minute charts heading into the afternoon
session.
Tuesday September
17, 2002 12:15 P.M. ET
SPY
Avg Legend: 5MA
15MA 60-Min
15MA See School
and Video
for Setups and Methodologies
Good Trading.