Take A Look At The E-Minis From This Perspective

• May 16, 2003
• Don Miller

Good Morning.

Both major markets are in the red after an initial extension off Thursday’s
closing bull cups — fueled in part by
trader reaction to the Michigan Sentiment data — was capped just shy of 950 and
subsequently led to a sequence of bear reversal cups on the one-, three-, and
ultimately 13-minute charts. “Jack be nimble” could likely best characterize the
morning trade as divergences on the climb provided heads-up clues to a possible
reversal, while trusting the trend supports until the breaks.

Longer term, the markets remain in a trading range amidst the daily uptrends,
with the 120-minute ES chart providing an interesting intermediate view between
our hourly and daily and which I’ve posted below.

Lastly, I’ll be away from the column next week to attend to next week’s “Virtual
Pit” experience. Seats remain if you’re interested, and I’m looking forward to a
week of dissecting the markets in every shape, form, and fashion as we trade
everything from short-term scalps to perhaps a final break of the longer-term
logjam. In the meantime, stay safe and let the trends be your guide!

 

ES (S&P)       
 Friday  May 16, 2003 
11:00 A.M. ET           NQ
(Nasdaq)

Good Trading and
Have a Great Weekend!

Don Miller