Pivot points on smaller time frames signal the beginning of pivot points on bigger time frames. Today the three major indexes, Dow, Nasdaq, and SPX traded to a third day rally. Moving down to a 60-minute chart on a few ETFs tied to market indexes, we can see indications of mini-trend turns. I traded a few today.

With the volatility so wild, the 60-minute chart of MZZ allows me to cut out intraday noise that would probably stop me out on a 5-minute or 15-minute chart.

The ProShares Ultrashort MidCap 400 ETF, MZZ formed a buy signal after it formed a higher low pivot. In the past few days the market, and MZZ have moved a great deal. I probably shouldn’t have expected much, and at least taken a partial sell quickly. I at least wanted to see the next candlestick hold a higher high, and higher low. In this case, I tried going for too much, partly because I was in the bathroom during a spike up, and because I got too greedy. I didn’t turn the profit into a loss, and sold breakeven. One of these buy signals will form again. It’s important I don’t remember what happened on this trade.

The time of day was poor for this buy signal. MZZ had just moved out of a distribution area, and as mentioned, moving averages point down. With those specific circumstances I should have sold some higher.

Sixty minute charts for the Nasdaq and SPX gave clues that we’d rally today. Yesterday, both triggered buy signals when they left higher-low pivots. This morning when both gapped near their respective upper trendlines, and ran right through them, it was off to the races.

I showed the same 60-min chart yesterday, but sure wasn’t expecting today’s huge rally.

The buying power today helps set up a seasonal rally into 2008. We’ll have to see how the eventual pullback plays out.