Here is today's wave chart for the e-minis. There is a very good chance that the drop from 876 has been completed. We have just put in an up wave that is not only longer than the preceding up wave but has broken above its top - and this after two volume climaxes and a shorter down wave.The market is likely to encounter resistance near 840 because at that level the rally from 825 will be 15 points, just the same as the rally from the electronic low at 833 this morning to the high near the day session open. But I think that any reaction will be limited to 10 points or so on the downside.
Even if this reading is wrong and the market drops below 825 today or Monday the rally we are seeing is the first sign that buyers are getting interested in this market at current levels. In any event the only thing still lacking on the bull side is strength above 840 on relatively high volume.
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