Why The Daily Stochastic Is Important
Both major markets are
approaching hourly downtrend support as we go to press,
as the markets bounce off their respective daily
supports. Despite the war-driven market that has resulted in occasional support
and target “overshoots,” the early trade has been fairly predictable, with the
daily bounce pausing at hourly downtrend support (resistance on longs).
Heading into the afternoon, a reversal of the current three-minute uptrend may
trigger a potential short entry off the 60, again keeping in mind such a trade
would be of a scalp mentality given the daily support which has thus far proven
strong. Keeping your eye on the daily stochastic as we bounce may also provide
clues in terms of the strength of this move, of lack thereof.
ES (S&P)Â Â Â Â Â
Tuesday March 25, 2003 11:30 AM ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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