This Is Where I See Some Potential Support
In an about-face from yesterday,
volatility is on the decline and ranges are tight as we approach the afternoon
session on this expiration Friday.Â
Adding to the chop is a potential transition phase on both the S&P and Nasdaq
markets as the hourly charts are attempting to reverse into an uptrend following
the bounce off yesterday’s lower Bollinger Band coil, while the daily remains
down, albeit still hovering around the 50MA.
Given the emerging double supports on the 13 and 60 charts, there may be
sufficient strength for an afternoon or Monday pop to challenge the daily,
keeping in mind that volume — or lack thereof — may complicate things heading
into the Holiday week. Nevertheless, should ES and NQ hold their 890 and 1020
areas, respectively, it might be worth a trade consideration with a stop south
of the doubled supports.
ES (S&P)Â Â Â Â Â
Thursday December 20, 2002 11:30 A.M. ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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From the recent mailbag
Hello Don. I found
Wednesday’s column very instructive, as you pointed ahead to two potential
setups that might evolve. That kind of timely teaching really helps reinforce
what we are currently learning from your other material. Thanks again. D.B.
Good Trading and Have a Great Weekend!
Â