Waiting For A Change In Tide
The Qs have broken yesterday’s
critical lows approaching midday as the
daily 15-MA continues to provide a clear visual lid on longs and will remain
resistance until violated to the upside. Weakness in non-tech issues have spread
to the tech sector, and even the semis — which provided early strength — have
been unable to stem the tide in what has become a pre-FOMC sellathon. Waiting
for at least a three-minute change in tide is a prerequisite for any reversal,
keeping in mind the larger trends remain down until broken.
Tuesday January
29, 2002Â 11:15 AM EDT
In yesterday’s
column we discussed the conflicting signals currently in place on multiple Q
time frames which can lead to choppy conditions until the conflicts and longer-term
consolidation resolve themselves. Such has indeed been the case over the last
few days as the Qs have been oscillating — wildly at times — as the conflicts
play out.Â
And in the “be careful what you wish for” category, perhaps we will
indeed get that daily retracement I spoke of yesterday — albeit with tongue in
cheek — which may provide better entry opportunities for longer-term longs.
Good Trading!