Here is a thirty minute bar chart of day session e-mini trading. My day session range estimate this morning was 985-1000 and I think it will prove to be close to the mark.I have drawn what I think are the significant trend channels on this chart. The upper channel line is currently at 1002 and this coincides with the top of the second purple box - the point at which the rally from 980 would equal twice its initial leg.
I think a 15-20 point reaction will begin soon. Midpoint support is at 987 (purple dotted line) and by the time this reaction ends the market is also likely to be touching one of the two lower channel lines I have drawn.
I think the up move from the July low at 865 will carry the market much further. In this post I estimated the top for this move to be the 1120 level - a level that will probably reached sometime in October.
1 comment:
Carl,
Thank you for your valuable opinion. I expect that we will top off in the 1000-1050 range later this month, as earnings season winds down.
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