S&P Update

Here is an updated line chart of the June S&P e-mini futures. I discussed this chart earlier this morning.

The reaction that I expected to hit at least 1304 only made it to 1306, a real sign of strength. A short while ago the futures broke out to a new contract high and as I write this are trading around 1315.

At the risk of getting too cute I want to observe that the volume on the breakout a short while ago was high but not as high as it was on several upsurges yesterday. Moreover, the peak today was made on visibly less volume that the breakout volume itself.

Since today's number of advancing issues hasn't yet reached the level of yesterday's I am willing to guess that we will see a three stage reaction of about 12 points or so down to 1304 before the market moves substantially higher.