Here is an hourly chart of the December S&P e-mini futures. I last commented on this market here.
The market has traded as high as 1417.50 this morning, a little shy of the 1418-20 resistance zone. But I do see a wide range up bar at the top of a big rally. This was a high volume hour stimulated by the release of the purchasing managers' report at 10am ET.
I think this wide range, high volume up bar on news just below resistance is telling us that the up trend has reached a temporary exhaustion point. I think the market is about to drop to 1405 or so and then will begin another rally which will carry it close to today's high.
1 comment:
Mr. Futia,
thanks for your blog, I follow it every day !
If we decline to the 1405 area, the pattern from Nov. 28th would look like an overlapping bearish diagonal, which should be fully retraced. After the rally you expect close to today's High, would you see a retracement to the Nov 28th lows ?
Thanks again,
Carlos
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