Wednesday, May 20, 2009

Update

Here is a 5 minute chart of e-mini day session trading. I no longer think this morning's rally was a demand shock - too much has been retraced by the subsequent reaction. But no matter. Demand shock or no, the short term trend is still upward. I am looking for the e-minis to reach the 952 level in a week or two.

Meantime I am still long one unit. A drop from today's high that is as big as yesterday's late reaction would carry the market down to 913-14 (purple rectangles). Plan B support is the midpoint of the same reaction, 910-11 (purple dotted line). I am sticking with my range estimate for today (blue rectangle). I think there is a good chance of seeing the 930 level later in the trading session.

1 comment:

DL said...

Banks have been weak all day. I don't think we'll test 925-930 unless the banks find some support.

Thanks for all your analysis. Much appreciated!