Relay Race
The Qs are once again in
downtrend mode as we approach midday,
with the 1450 futures level (approx. $35.90 on the Qs) which worked so well in
guiding Monday’s trade continuing to effectively direct trade bias as noted in
the chart. Reduced earnings in the tech sector has been among the main culprits
today, along with weaker than expected factory orders, as traders and managers
complete the most recent leg of a sector rotation relay race which at times
appears less consistent than last night’s NCAA slop-a-thon.
Shorter-term, the strength and rhythm of the three-minute trend support has been
exceptional in guiding intraday trade. Simply put, trading on its side will keep
one out of trouble while positioning for profit. On a longer-term basis, the Qs
are approaching critical price points which have stood as support throughout
recent days, and bulls will need to take an aggressive stand at those levels if
today’s drop is anything more than a blip on the radar in a new longer-term bull
leg.
12:00 P.M. ET
Good Trading!