Here is an updated 5 minute bar chart of the e-minis. The market gave up all of the advance associated with a demand shock that started from the 815 level. However, the volume on the break showed a modest tendency to drop while the latest rally from shows higher volume than on any bar during that drop. So I am going to stick with my view that the trend has turned upward and that the 797.50 level reached on January 20 will hold. If I reading things correctly the market should start upwards from tomorrow's open and stay above it all day.
Thursday, January 22, 2009
Late Update
Here is an updated 5 minute bar chart of the e-minis. The market gave up all of the advance associated with a demand shock that started from the 815 level. However, the volume on the break showed a modest tendency to drop while the latest rally from shows higher volume than on any bar during that drop. So I am going to stick with my view that the trend has turned upward and that the 797.50 level reached on January 20 will hold. If I reading things correctly the market should start upwards from tomorrow's open and stay above it all day.
Maybe, but only if we can climb back above the 847 level.
ReplyDeleteGiven the inability to hold the earlier breakout and the reluctance to buy the pullback I think the market has more work to do on the downside.
me too Carl, thinking to add at the opening. This inability is just panic selling , clearly market is short term oversold. When bonds hit support, then you have to worry
ReplyDeleteCarl, congratulation on being listed by 24/7 Wall St as one of the top 25 finance blogs on the web!
ReplyDeletehttp://www.247wallst.com/2009/01/it-has-been-ove.html
Keep up the good work.
Jeff