S&P

Here is an updated hourly chart showing pit trading in the March '06 S&P futures which is now the front (most active) month.

This morning the market rallied sharply off of my preferred support level near 1263 but then pulled an abrupt U-turn back below the 1270 level. This means that it is now headed for the target I labeled "less likely" in my last post and which is now labeled "reaction target" in the chart above. This is the 1255 level in the March '06 contract.

After that support is reached I expect a move up to 1298.