S&P

Here is an hourly chart of the September S&P e-mini futures. I last commented on this chart yesterday.

The market is getting close to my initial upside target at 1285. The last high of consequence was 1290 reached in electronic trading on July 7. My guess is that the market will stall a bit shy of that high and then react for a day or two. But any reaction should hold support in the 1260-65 zone. Once the 1290 high is breeched I think we will see the market stall briefly again near 1300.

I think that the June 14 low at 1229 will prove to be the end of the drop from the May top at 1331 and that the rest of 2006 will see a significant rally in the major stock market averages.