This pop is not likely to last.
Yesterday's rather strong sell off of more than 1% at the lows, saw what I would call somewhat typical late day
short covering rally. Although a bit strong for only short covering this is also worrisome because the NDX and
the other major indices just made it back to the flat line...well not the SoX. Meanwhile, the oscillators quickly
went from oversold to almost overbought. With what I expect to be a typical "calm" Friday trading pattern,
so that the Weekend News Readers feel good about going into to work Monday,...we have the usual morning
volume as enough to push prices higher as the.. almost overbought oscillators move into the caution area.
Now a look at oscillators on multi time frames,.. which are not yet in sync for a BIG decline as there is still some work to be done .... but.!
The daily oscillator that has been on a BUY since the recent lows is now rolling over, however the hourly is trying to bottom out and turn Up.
ONCE the Hourly reaches its resistance I expect it to join the DAILY which is Rolling Over,
and that will be in sync with the Weekly,... which is at a pause area on the charts, but is still pointing down,...and entering its acceleration/momentum area which I posted on a chart yesterday.
So trade safe by cutting your trading position size for Longs,.. to 50% and no overnight or weekend holding.
So sorry it took me more than 5m to write and post this
Trade safe
Edited by Mr Dev, 30 March 2007 - 10:20 AM.