Wednesday, June 4, 2008

Stocks Solidly, Reliably HIgher Today

Contrast the previous charts in my last post with this intra-day chart of the Dow futures today. It is solidly higher and charts are trading with excellent reliability. Here are the 15 minute and 3 minute charts:
Even the tick chart is smooth and reliable, even when the market shows some downward movement, as in this chart. I won't short this market until at least one higher time frame closes below the Exponential Moving Average and I see at least one fractal with a lower low and a lower high on the tick chart. I will also watch the next two higher time frames (15 and 3 minute) for dynamic support/resistance in the form of the EMA and Bollinger Bands. I'll be waiting for the chance to go short!