Hi Ally,
I would attach less importance to any H&S pattern and simply focus on the swing high and low of the range that the NDX / COMPX is stuck in.
Its useful I think to note the H&S but not very easy to trade. Useful to note these patterns since others, many others, note them. But patterns morph all the time, and a H&S is really a collection of more than one pattern. If we attach too much weight to something we might make incorrect judgements. I think people frequently sell themselves on a particular thesis and follow it through to the bitter end whether it still fits or not.
We must be chameleons. Or water to steal something from the latest Schwab commercials.
One thing is for sure, the bulk of market participants note swing highs and lows. We know there is extra activity at these points because they are focal points for opposing forces, and ultimately one winner.
If the tech market can't push up through the range, and fairly soon I would think, then the chances increase of a rapid trip to the lows of the range, where there again, we will have to wait and see the outcome before we can safely enter a trade.
So far all I see on the 45 minute charts is a failed test of top, so for all we know, the low of the range may well be tested. One step at a time however, the day is still an 'up bar'. Until yesterday's low is taken out, I'm not inclined to do much on the short side.
(ps Schwab Canada does not have the facility that you spoke about at TD Waterhouse. Schwab is terming it a 'washed trade' facility. I'm thinking.) |
