My Next Critical Decision Is…
The S&P and Nasdaq markets have
continued their hourly downtrends today and volatility is on the rise
in both markets as we head into the afternoon
session. Given the rise in volatility, trading pace has been very similar to
late-summer with wild oscillations and squeeze-driven pops on both the long and
short sides. A bearish cup-and-handle formation is currently playing out with
the 13-minute 15MA serving as handle base premise, as our charts once again
direct the trade.
The next critical decision heading into this afternoon and Friday’s session
would appear to be whether the hourly chart has one more downside extension in
it (toward the lower band) in order to gain enough coil strength to test a
reversal heading into the Holiday week. In the meantime, respecting the 13 & 60
downtrend supports remains the ticket for short trails. Nevertheless, given the
climbing VIX.X and approaches to chart extremes, expect a few good reversal
trades over the next few days, should the triggers present themselves.
ES (S&P)Â Â Â Â Â
Thursday December 19, 2002 12:50 P.M. ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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