Testing Uptrend Support
Both major
futures index markets are green yet off their early highs
as we approach midday, with the Nasdaq once again
showing relative strength vs. the S&Ps. Our key intraday three- and 13-minute
trend indicators reversed to the south about 11:00 a.m. ET, and both markets are
showing potential bearish cups with handle short supports at about 933 and 1128
on ES and NQ, respectively. As a result, stops on current intraday shorts on the
late-morning 3- and/or 13-minute triggers could be considered on any market move
north of such levels.
The relative weakness in the S&P market can be seen by the price probe south of
60-minute support, while the Nasdaq remains slightly north of its hourly
threshold. Regardless, both markets are currently testing key hourly uptrend
support which has been in place for much of the last four days.
As the shortened holiday week progresses, traders should be alert for periods of
low volume and liquidity, which will further emphasize the need to scale
profitable exits into retail supply before reversal air pockets surface.
ES (S&P)Â Â Â Â Â
Monday November 25, 2002 11:20 A.M. ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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