Here is a five minute bar chart of day session e-mini trading. The market opened a lot lower today, but downside volume was less than at the same time yesterday (red arrows). This level of activity is consistent with my hypothesis that we are seeing only a normal break in a continuing up trend, not a big reversal of that trend.I think a rally of 8-10 points from this morning's low would be normal (purple rectangle). I have positioned the high of my new range estimate there and still think the market will drop to 880 later today (blue rectangle). As long as midpoint resistance based on yesterday's afternoon rally holds (purple dotted line at 903) I shall stick with my view that the market is headed down to support at 875 over the next couple of days.
Once this reaction is complete I think the e-minis will rally to midpoint resistance at 952.
4 comments:
Hi Carl,
what do you think of "Market Profile" charts? Do you think they are useful?
Well can't tell for sure if your 880 will hold yet..but boy I would sure like to understand how you so often call the exact high or low of the day...........just so accurate.
Thank you.
Right down to 880 like you said Carl
Ron,
A couple of Carl's buddies at Berkley (in the Physics department) let him borrow their time machine, to test it out.
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