Tactics

Here is a 30 minute bar chart of the e-mini day session for the past 10 days. I am long two units and think that the low of the reaction from 928 was seen early this morning in electronic trading at 878.75.

Volume on the advance today has been unimpressive thus far (green line). So I have to entertain the possibility that this rally will end at a lower top and be followed by a drop to 865-75. How high might the e-minis get first? The previous rally on the way down was 18 points and an 18 point rally from today's low would carry to 897. There is midpoint resistance at the lower dotted purple line near 903. Averaging these two level makes 900 my first target. The second target is the higher purple dotted line at 913 - also midpoint resistance.

Right now there is no way for me to tell whether this rally will end at a lower top or not. Because I expect to see the 952 level later this month I have to be aggressively bullish on any sign of a new advance. But if the market fails to generate more volume on the way up from here I plan to be aggressive taking profits as well.