Play for Wednesday, May 13th

My analysis for today is simple:

• Sell signals on intraday charts in the 4430s to 4450s will be sold.
• Buy signals anywhere between the 4410 to the 4440s will be bought.
  

See the 15 minute intraday chart below: the 200 period MA is the line in the sand for me, and as of now it stands at 4437.


The chart below is an intraday 1 hour chart, set up with an Alligator indicator. I use this indicator not to enter trades, but to get a feeling of trend vs range, and understand how powerful or tight each one is. As you can notice, the "mouth" of the Alligator has been closed shut for two days: the longer the mouth stays shut, the more powerful is the move that follows (usually).

I also described a potential downward triangle that had formed: it got broken slightly in after-hours trading, and we'll have to watch what happens this morning.


Be mindful that:

• Momentum is mixed on intraday charts.
  
• The 50% to 61.8% retrace from the last highs (4510 reached in the after-hours on Friday) to the recent lows is between the 4050s to 4060s.

Be cautious either way, I will continue to trade so.