S&P

Here is a 30 minute bar chart of the December S&P futures. I last commented on this market here.

A little after the open today the market rallied to 1387.25 and since then it has been pretty much all downhill. I think this swing will carry to the 1369 downside target over the next day or so.

I have drawn the boxes which I believe are controlling the drop from 1395.25. Note that the 1/2 point of the current box is near 1370. Since markets stop swings at the 1/2 point of boxes more often than at the top or bottoms of boxes we have another reason to think that the correction will end near 1370. The 1370 level was the low on October 23 which ended a drop of 28 points from the electronic high of 1398 the previous evening. Finally, the drop from the high on September 5 to the low on September 11 amounted to 25 points and this is yet another reason to expect support near 1370.