My Afternoon Alternatives
Volatility has been dropping like
a rock and the major indices have continued their hourly uptrends on this Monday
morning. Both the S&P and Nasdaq markets
have continued Friday’s closing uptrends from the slight opening gap down into
13-minute trend support, with a straight-up trend that has yet to trigger short
on the 3-minute chart as we go to press. That, my friends, is strong.
So where does this leave us heading into the afternoon session? In terms of
reversals, as was the case during much of last week with the declining
volatility and strong trend day, traders may want to eye any interim exhaustion
surge out of consolidation toward the upper bands followed by a break in the
three, or alternatively a clear break of the 13 post-consolidation should it
occur. On the long side, the earlier high-probability trades off the uptrend
supports have passed, leaving risk/reward on new longs a bit troublesome. Yet
the 13-minute support can continue to serve as a decent trail premise for any
existing longs.
ES (S&P)Â Â Â Â Â
Monday January 6, 2003 12:00 PM ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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