Wednesday, November 29, 2006
Here is an hourly chart of the December S&P e-mini futures. I last commented on this market here.
I thought that the S&P's would halt their rally near 1391 and then take out the 1378.75 low by a couple of points. But instead you can see today's first hour showing a wide range entirely above 1391 resistance. Just as significant is the fact that this bar is overlapping the wide range downside breakout bar that kicked off the drop to 1378.75 early Monday.
I conclude that 1378.75 was the reaction low and that the futures are now headed up to 1418-20 resistance.