Fence-Sitting Time

It's fence sitting time at the Q corral this morning as the Qs are testing critical long-term support and short-term oversold conditions while remaining in an hourly downtrend. In the bullish corner, we have weekly 15-MA support and oversold hourly stochastics (which, as we know, can certainly become more oversold). In the bearish corner, we have a continuing hourly resistance, which the Qs must penetrate before trading longs for anything more than contra-trend scalps. And in the middle, we have a 13-minute 15-MA (approx. 200-period) which has been absolutely indecisive as we approach midday. A hold or break of yesterday's closing low into the lower hourly and daily Bollinger bands may provide a clue, as well as a move off the 200-period intraday fence. As usual, keeping an eye on the reaction of the 13-minute stochastics will also help provide clues as we head into the midday Philadelphia Fed report and this afternoon's (MSFT | Quote | Chart | News | PowerRating) earnings release.

Thursday January 17, 2002  12:00 PM EDT

Good Trading!

Don Miller