How Low Do We Go?
How low do we go, and
do we begin to accelerate to the downside are current relevant questions as the
Qs test their intraday lows south of critical hourly support. Positioning for
profitable shorts has required a bit of creativity, and more importantly, focus,
in light of the gap down this morning, yet we’ve had a few decent emerging short
trend supports on the smaller time frames which have provided some nice entry
triggers and stop premises. Now that we’ve lost key hourly support, and in light
of the overbought condition on the longer time frames, the 60-minute 15-MA may
now become resistance and should continue to be respected in support of
whichever trend is in place.
Tuesday November
20, 2001Â 12:10 PM EDT
(1)
Approx. Equivalent QQQ Price
Those attempting to
position short yesterday on the probing of 60-minute support hopefully continued
to both respect the support level as well as see the strength divergence which
developed on the second probe as shown above.
Good trading!