Wednesday, October 14, 2009

At resistance

Here is an hourly bar chart of day session e-mini trading. The market has rallied to a level just below midpoint resistance at 1091 and to within just a few points of the top of its bullish trend channel. Since the e-minis have rallied for nearly two weeks without much of an interruption I think a break of 20-30 points is likely to start soon. I do think that midpoint support near 1070 (purple dotted line) is likely to stop any such reaction. I also believe that the e-minis have a good chance of reaching 1120 by the end of the month.

6 comments:

TradingNuggets said...

Time to take the Contrarian view and go short... too much euburance in this market now!

There is no "Wall of Worry" anymore. Just the media saying "The Recession is over" and everything is lovely in Oz.

Green Shoots...It's a Beautiful Thing!

Jack

Idris said...

Carl your understandings of the markets have been outstanding... you have much confidence.

thank you

Id

Urban said...

Carl

I have been incredibly impressed by your results. If the market now does what you say and retreats 20-30 pts and then moves on to 1100+ I will be blown away.

Thanks again for this blog.

brychao said...

Love this site.

andrea.shore said...

Carl,

Can you please explain "midpoint resistance"? You've used it twice here and neither appears to be the midpoint of anything.

Much appreciated.

Andrea

andi said...

mid pt is carl classic..he looks at the narrow range bars and pick up the mid pt as a fair res/sup. A fair idea, i would say.