Fence-Sitting Time

It’s fence sitting time at the
Q corral this morning
as the Qs are
testing critical long-term support and short-term oversold conditions while
remaining in an hourly downtrend. In the bullish corner, we have weekly 15-MA
support and oversold hourly stochastics (which, as we know, can certainly become
more oversold).
In the bearish corner, we
have a continuing hourly resistance, which the Qs
must
penetrate before trading longs for anything more than contra-trend scalps. And
in the middle, we have a 13-minute 15-MA (approx. 200-period) which has been
absolutely indecisive as we approach midday. A hold or break of yesterday’s
closing low into the lower hourly and daily Bollinger bands may provide a clue,
as well as a move off the 200-period intraday fence. As usual, keeping an eye on
the reaction of the 13-minute stochastics will also help provide clues as we
head into the midday Philadelphia Fed report and this afternoon’s
(
MSFT |
Quote |
Chart |
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PowerRating)

earnings release.

Thursday January
17, 2002  12:00 PM EDT

Good Trading!

Don Miller