S&P - The Battle Continues.

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

The market has so far rallied to 1389.75, almost two points above yesterday's close and almost a point above the 1/2 retracement of the drop from the early electronic high (not shown on the chart) at 1395 to this morning' 1383 low. The market has also traded almost three points above resistance at 1387.

This behavior shows a level of strength that is not consistent with my expectation of a move to to 1375. Morover, note that the last hourly bar, highlighted in green, shows an expanded range and has its low at the level at which the three previous bullish surges started.

I conclude that this morning's drop was a completed correction and that the market is now headed up into the 1402-04 range. The low of the last green bar at 1384.50 will now be support.