S&P

Here is a line chart showing the closes on a 15 minute bar chart of the June S&P e-mini futures. I like to use line charts to analyze the relative length and duration of successive market swings. This gives me some insight into the market's technical strength or weakness.

Two big things jump out at me from this chart. First, the swing up from point c is already longer than the one from point a to point b in both price and time. Second, the successive volume peaks associated with successive upswings within the upmove from a have been getting higher. Both of these facts depict a market that is gaining technical strength and this implies substantially higher prices lie ahead.

Looking at the upswing that started from point c, we see that at the moment this swing may be faltering. The reason is that the small swing up from from point dd is shorter than the one up from point bb which in turn was shorter than the one up from point c to point aa. However, since volume on this morning's upswing was bigger than on any upswing within the whole move up from point a I think it is reasonable to expect the market to move to 1304.50 or higher before any reaction sets in. This would make the move up from dd longer than any up swing within the move up from point c and would be an even more bullish indication.

In any case, this market is acting very bullishly and should soon make new contract highs above the 1310 level. I don't think any break as bigger than 20 points will develop before the market reaches 1325.