Wednesday, September 16, 2009
Here is an hourly chart of day session e-mini trading. Today the market showed more strength than I expected when it moved a couple of points above the high of my range estimate of 1057. This also put it visibly above the upper parallel line for the bullish trend channel. The market is trading above midpoint resistance at 1054 (lower dash red line)but the midpoint between the September 2008 top at 1291 and the October 2008 low at 837 stands at 1064 (higher dash red line). Moreover, the electronic high in the e-minis for the rally which followed the 837 low was 1067. The market is digging into strong resistance and I still think the e-minis are likely to stall near current levels and then break to midpoint support near 1011 (purple dotted line).