This Was The Best Opportunity For The Early Trade
The markets are doing some major
fence-sitting this morning, especially on the hourly timeframes, as we go to
press. The initial gap down into
13-minute support followed by course triggers have thus far provided the best
opportunity of the early trade, while the rest of the action has been lame at
best.
The major ES conflict at the moment is between an ever-so-slight chink in the
13-minute long trend vs. an ever-so-slight test of hourly trend support which,
in my view, remains in a prove-it-to-me mode given its angle and the longer term
charts. Waiting for conflict resolution is necessary before the markets can tip
their hand further.
Reviewing
yesterday’s column and afternoon action, Tuesday’s midday break to the north
on the 13-minute indeed provided traders with decent long opportunity, given the
price gap which had developed between the 13 and 60. As we’ve discussed
extensively over the last few years, such an gap is typically required and can
help provide sound profit potential guidance on trades which are contra to a
larger period. And yet again, the market cooperated nicely as traders took the
signal to go long or cover shorts.
ES (S&P)
Wednesday February 26, 2003 11:30 AM ET NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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