Probing Supports

  • October 30, 2002
  • Don Miller

Both the S&P and
Nasdaq markets remain in 13-minute uptrends which triggered yesterday afternoon
and have also probed through hourly
supports as we approach midday. In fact, hourly charts on both markets are
setting up in a potential bullish cup amidst the daily uptrend with 15MA handle
base supports, although I’d like to see stronger 15MA support angles before
getting too excited about the formation, and I’d prefer to see the right edge of
the cups at the critical 900 (ES) and 1000 (NQ) levels which would provide
better symmetry, with respect to the left and right rims. 

Nevertheless, whether or not the hourly can indeed carve out an uptrend appears
to be the next key in determining whether there’s enough gas left in the tank
for a further daily extension. Shorter term, the three-minute trends have turned
down as we go to press, and resolution of conflicting 3 & 13 minute trends may
hold clues as to the afternoon bias.

ES (S&P)         
Wednesday October 30, 2002  12:00 P.M. ET            NQ
(Nasdaq)


Moving Avg Legend:
5MA
15MA 60-Min 15MA

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Good Trading!


Don Miller

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