S&P Update

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

The intial downward leg of the drop from last week's high of 1411.25 has been bigger than I expected. I now think the market will rally from its current low of 1384 and make it back up into the 1392-93 zone. From there a third phase drop will probably carry the S&P's down a little more than I initially thought, probably into the 1378-79 range. This would involve a quick peek below the November 10 low at 1379.25.