As you can see in this updated 5 minute bar chart of the e-minis the market has just reached a new high for the day on the day's highest volume bar but one. This together with the fact that the e-minis are trading above 825 resistance makes it likely we are seeing a demand shock. This means that the short term trend has turned upward once more. The shock began at the 820 level so the market should hold above there if my prognosis is to prove correct.It is worth noting that this shock began at just about the same level as the last demand shock on January 15 which started from 821. This is a common phenomenon arising from the fact that the same people are responsible for both. And this observation makes it likely that this indeed is a demand shock, not just a deceptive rally.
4 comments:
Carl, I am a major wire house veteran FA and although I don't trade or advise clients to trade, I find your information from a technical viewpoint very valuable. Thanks so much!
hey carl
for whats its worth there is a cycle low due by friday this week and a short term uptrend into feb 9th 13 th should be expected.
well knoww soon enough on monday
if your correct and my cycles still are working then we should see a strong rally next week .
yet ill say this we are still not out of the woods yet and new lows are possible into feb 27th or march 27th . after that period
my bias will be a bullish trend
into june aug 2009 .for now
ill keep the bullish bias into mid feb after that we will need to take a good look at the internals
and most likely take a bearish stance . lastly , new lows
will be a bullish set up .
the key will be how this market
acts from mid feb into mid to late march . that time period is where many bearish cycles end .
good luck
and ps always amazed at the
non sence some people post .
id take the 50 k bet yet ill guess
he dont have it .
good luck carl
joe
Hi Carl,
It appears that the December lows will hold, as was hoped and expected. Yesterday may well have been the trading cycle low for the 6 to 8 week trading cycle. If so, then this means we now have a higher low than the low made in November. Lots of ifs, but providing this pattern remains, then we should now see a rally above the 900 level and then to 1000 after a brief sell off upon trading above 900.
The overall chart pattern suggests that the bottom is already in place. Time will tell.
Thanks.
Kindest regards,
PM
The Media loves Obama... they will report all the positive news they can. Even when things aren't right for #44, the media will give him a pass and heap praise on him! You don't think this won't change the market and the public psychology to"better times are here!"
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