What supported the market, 6-9

Discussion in 'Technical Analysis' started by tradersaavy, Jun 9, 2003.

  1. If you go to a 1m chart of NQ, at 10:36am the market hit support that held for the day. What was the support ? Personally I do not see a trendline, pivot or moving average on any time frame at that support.
  2. Kermit



    If I were to take a crack at it, it looked like a 161.8% fib extension from today’s 9:41am low to the 10:01 high; which is also confluence area from the 10:19am high to the 1:03pm low of last Friday (6/6).

  3. dbphoenix


  4. Jordan


    I only use ema's on futures because that's what the futures guys do. And on futures the 13 pema is fairly common. On my charts then, the daily 13 period ema for NQ03M was support.
  5. Tea


    10 day EMA
  6. 5 minute chart? 3 minute? what period?
  7. Jordan


    Which brings up a good point. I am sure visually that the 10, 11, 12, 13, etc ema's all looked like support. Unless you are doing cycle analysis with offsets, close enough will do. But sticking to the more popular averages will serve you well, and I'd guess that the 10 is more popular than the 13.

    Nice one Tea.
  8. Jordan


    Avalanche I am not sure about your question because my quoted reply refers specifically to the daily 13 period ema.
  9. JT47319


    Controlled selling followed by a gradual short covering rally all day long from the professionals who carried over the weekend (as evidenced by declining Open Interest). The drift down was due more to lack of buying interest rather than motivated sellers.

    Selling interest and volume at that particular range extension low was not met with enthusiasm. Sellers want to sell high, not low. And obviously they thought it was too low. Now then, tomorrow's perception of value might but be different given all the bad news lately.

    That particular low is something like a "dead zone." Little volume and activity over the past 10 days at that particular price value.
  10. JT47319


    Another way to look at it as well, is that the low was roughly the 5day Average True Range (or some other measure of average intra-day volatility, take your pick). Price initiative was not motivated enough to push lower than normal.
    #10     Jun 10, 2003