S&P

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

I think the market has begun a break which will carry it down roughly to 1369. I came up with this level by noting that Sunday night the e-minis traded up to 1398 and by early Monday morning had dropped to 1370 before beginning the rally which took the market to 1393.75 this morning. So 1393.75 is in fact a top below 1398 and thus I would expect the market to break below 1370. But since conditions are still quite bullish in my estimation I don't think the break below 1370 will be by much.

The chart shows my best guess for the course of the correction. The S&P's have already dropped near the 1384 level which I think will be temporary support. Then I would expect a 5-7 point rally followed by another break to 1378-80. Then a bigger rally to a lower top followed by the final phase of the correction to 1369. But remember this is only a guess and I shall try to adapt to changing circumstances as the price pattern evolves.