S&P

Here is an hourly chart of pit trading in the December S&P futures.

You can see the sequence of higher lows that has developed since the October 13 low at 1172. This is a very bullish sign. Lots of market technicians are selling this market because they see various kinds of divergences as the S&P approaches its bull market high of 1250. This has been a smart tactic for most of 2004 and 2005 but I think the market is about to change the lock on its vault of trading profits.

I think we will see 1246 within a day or two and the 1265 level within a couple of weeks. Looking into 2006 I think the 1350 level is a reasonable expectation.