Here is a five minute chart of e-mini day session action. The e-minis have had a run of seven straight bullish days, yet the market still creeps higher. I think this is very bullish action. It is as if the stock market is determined to drag every bear and reluctant bull, kicking and screaming, back into a fully invested position. I think we shall see the e-minis trade well above the 1000 level sometime during the next two or three months.You can see the sequence of higher lows on this chart. Each reaction is shorter than the last. I think we have seen the day's low so I am revising my range estimate to 945-965 (blue rectangle) and think that the day's initial rally will prove to be about half of the day's range (purple rectangles). I now expect midpoint support near 951.50 to hold (purple dotted line).
"You can see the sequence of higher lows on this chart. Each reaction is shorter than the last."
ReplyDeletePretty soon there will be no reactions at all, just a relentless upward movement.
The U.S.A. is bankrupt
Bears have become zombies. Zombies don't react.
ReplyDeleteI am only amazed at Bernanke's obsession with the stock market. He will go at any length to serve his masters at Wall Street, including nuking the dollar. Monumental debt for the US is his only fiscal policy and his monetary policy is limited to printing.