S&P

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

A little while ago the market dropped to the 1336 level. This is a full 4 points below what I expected to be support at 1340. Moreover, the drop below the three day trading range is starting to shows signs of acceleration.

For these reasons I think that the 1340 level will now function as resistance above the market. I am guessing that the drop from 1350 will be about as long as the previous one, 19 points in the S&P's. So I think we shall see the market supported near 1331.

From a low near 1331 I think the S&P's will rally to 1360.