S&P

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

I thought that the market would hold yesterday's low at 1325.50 but as you can see this level has been broken decisively. I think this means that a drop of 25 points or so from 1340 is underway. This would make this reaction as big as the last reaction which ended at 1302.50.

My best guess is that we shall see a typical three phase correction. So I am looking for a low near 1320, followed by a rally of 10 points or so, and then a third phase drop to 1315.

I still think that the market will be trading above the 1400 level later this year.