Focus Shifts
Based on the
morning charts, trading volume, and temperature in the Northeast,
it appears many traders have headed for the beach, if just for the
morning. Early ranges have been narrow, as the market sorts out the latest round
of earnings and upgrade/downgrade fallout. We’ve held yesterday’s lows, albeit
with the techs lagging the broader market thus far … a shift in sentiment,
compared to the last week or so.
Given the lack of much intraday movement, my focus has turned to the longer-term
charts to study possible scenarios. On the weekly chart, the Qs continue in a
downtrend with some strengthening price/momentum divergence. The daily is
currently at a crossroads with a price tease above trend support, while a clear
trend reversal remains unclear. Should the price not move up within the next few
days, a possible “overbought on resistance” scenario may emerge on the
daily. The hourly, which provided another good backdrop yesterday, is a bit less
clear today as we have a price tease below trend support, yet with stochastics
rapidly moving south.
All in all, a restful morning as we await stronger probability setups. Intraday
QQQ volatility has dropped significantly over the past two days, as all good
things must come to a momentary end. (It was great
while it lasted!) Perhaps the release of the Philly Fed Report will
provide some tradable afternoon momentum.
Thursday July 18,
2002Â 12:00 P.M. ET
Good Trading!
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