These Extreme Reversals Are An Added Boon
Both major markets have once
again torched the retail traders and investors as the gap and trap game
continues. Both the S&P and Nasdaq are
hovering around daily 50 MAs and hourly supports as we go to press. Bear cups
with 15MA handle supports are in place on our key 13-minute charts, with one
mid-morning extension having already taken place and further afternoon
extensions hinging in part on the test result of the hourly and daily.
While longer term charts remain rangebound and somewhat schizophrenic between
the 50MA and 200MA (the S&P also remains above its 15MA), the intraday pace
remains in favor of short-term traders. The fact that extreme market reversals
which had recently been occurring in the middle of the night are now occurring
during the waking hours (for most of us in the US anyway) is an added boon.
Another turn to the north on the 13 as occurred at yesterday’s close is a
prerequisite for a possible daily extension, while a hold of the current
downtrend and bear cup would provide additional downside support.
ES (S&P)Â Â Â Â Â
Friday April 11, 2003 11:30 AM ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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