Will The Classic Conflict Continue?
Both major markets remain in
hourly downtrends with a textbook opening oversold bounce
that carried from the lower Bollinger Band all the
way to downtrend hourly support on ES and downtrend 13-minute support on the
weaker Nasdaq. Both the contra-trend bounces and the trend-reversion moves were
accompanied by one and three-minute triggers providing traders with ample
opportunity to profit from a portion of the early swings.
Heading into the afternoon session, any move into a bona-fide 13-minute uptrend
will result in a classic 13 vs. 60 conflict, with both supports requiring
respect and thus providing likely scalp opportunity until the market decides
which will rule the roost. Given the daily and hourly combination, a bias could
be stated to defer to the short trends, yet the market must as always be the
final judge.Â
Any approach to the 60-minute downtrend support with breaks on the lesser
timeframes may provide additional short opportunity, keeping in mind each
subsequent pullback on the ES hourly from this point forward will be incremental
to the initial morning pullback and result in added risk. Any loss of interim
13-minute ES support will align the 13 with the daily and hourly short trends
and may provide additional fuel for the shorts. The Nasdaq already remains
below water on all key timeframes thanks largely to trader reaction to a
pathetic revenue forecast from chip leader AMAT.
ES (S&P)Â Â Â Â Â FridayÂ
January 31, 2003Â 11:00 A.M. ETÂ Â Â Â Â Â NQ
(Nasdaq)
Â
I appreciate the
feedback to yesterday’s column, all of which was favorable to sharing the trade
sequence, which I’ll keep in mind going forward.
Don, Great articles. They are the best in the business. (just wanted to let
you know) Thanks. S.D.
I think I’ve told you this before, but you’re articles have really helped
improve my trading, and I really appreciate your work! J.K.
Good Trading and Have a Great Weekend!
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