Here is a 5 minute chart of today's e-mini trading. The market has broken below the red line representing support at 828.50. This happened on increasing (but still not high) volume (upwards sloping red line). I now think the market is headed back below 800.If the rhythm of the drop from today's high is maintained any rally from current levels should be limited to 6-8 points (blue rectangle). The purple dotted line is drawn at resistance at 834.50. So any rally from 825 or so should stop at 831-34.
I don't know, Carl, I think we may have more on the upside.
ReplyDeleteThe move down retraced just a little over 50 percent of the move up from Friday morning's low to this morning's high. That seems like a normal corrective move to me. Also, the move down looks more corrective than impulsive to me, what with the overlapping waves early on in that move.
So I think the short term picture is still bullish.