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Friday, May 13, 2011

"Sliced & Diced"..."Squeezing & Juicing" next?...

NB:  Because Blogger was down last night and this morning before the market open I couldn't post this, but I did write it last night...here it is now, FWIW.

I would refer to the 60 min chart grid below of YM, ES, NQ & TF. If any more retracing occurs in between the horizontal levels shown on these charts, these markets will be so "juiced" that they're liable to either spill out and run in all directions all at once, or just lie there in a dribbling, messy heap!


That being said, I'll be looking for one of the following scenarios to play out over the next while:

  1. a concerted move (with conviction) for a breakout in one direction or the other to clear and move away from the outer-most levels and continue in that direction
  2. a slow-moving, dribbling, messy contraction to form in between these outer levels
  3. a slow/fast-moving, dribbling, messy expansion to form in between these outer levels, while sometimes piercing through them

For a clearer picture of whether the bulls and bears are "kept in the blender and on what speed and setting," I'll have to drill down to lower timeframes and try and make sense of things as they play out on a daytrading basis...and hope that the juice doesn't run dry in the meantime (e.g. volumes and volatility drying up).