Triple-Witch Week

December 17, 2001
Kevin Haggerty

Friday
was choppy, with the early
sequence for the NDX
(
$NDX.X |
Quote |
Chart |
News |
PowerRating) going up, down, up, down, but daytraders
got a good ride starting on the 2:25 p.m. bar, as the NDX had a late-afternoon
rush, breaking out of an ascending triangle above 1600, running to 1629 by 3:10
p.m., then backing off the close at 1605.67. Love those programs. The QQQs ran
71 cents, then closed at 40.11. The 39.42 .50 retracement to the May high held
the downside, as the QQQs bumped against a 39.58 intraday low five times
before breaking out of the pattern on the 2:25 p.m. bar.Â

The Nasdaq Composite is
back to the initial resistance it broke through. It closed at 1953, off an
intraday low of 1934. That 1934-1950 zone was anticipated on the way up, and it
is certainly positive if it can hold it into year-end. The 20-day EMA is 1949,
so you have a pivot point to play with. The seven-day pullback of 5.9% in a flag
pattern is from the 200-day EMA, which is now 2053, and Friday’s intraday low of
1934 is a pullback to the 200-day SMA, which is also 1934. You are now watching
for a break out of the flag to the upside and can use the 1934 200-day SMA as a
downside pivot if sellers enter the game.Â

The SPX
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed at 1123.07, holding the .24 retracement to the September low of 1119. The
50-day EMA is 1124.90, and Friday’s high is 1128.28, so your upside pivots are
defined for today. Those of you who attended my seminar and have the tapes see a
familiar pattern setting up here in the SPX that gets triggered above the high
of the low day, which is Friday.Â

Stocks
Today

You always want to be
prepared across all sectors that set up because you don’t know which way the
Generals are going to go the following day, but if you prepare in advance, you
can take the ride on the train when they come.

Have a good trading day.

Five-minute chart of
Friday’s SPX with 8-, 20-,
60- and 260-period
EMAs

Five-minute chart of
Friday’s NYSE TICKS

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Triple-Witch Week

BUY THE FEAR, SELL THE GREED

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