Tuesday, July 07, 2009

Update

Here is an updated version of the hourly bar chart of e-mini day session trading I showed you yesterday.

The green line at 867 represents two midpoint support levels - the midpoint between the 1067 top in October 2008 and the 666 low of March 2009 - and also the mipoint between the recent 957 top and the late March 2009 reaction low at 776. You will also note that the trendline channel I have drawn for this reaction (purple dotted lines) crosses this support early in tomorrow's day session.

The red dashed line at 876 records the levels of the May reaction lows in the September '09 contract. I expect the e-minis to break those lows on the way down to support. I don't think the break of those lows will generate much in the way of selling activity. If I am right then I think the market will quickly move up from 867 support and begin a move to 965-980.

1 comment:

waiting2pounce said...

Thanks for your fine work, Carl. Good call today.