Thursday, October 22, 2009
Moment of truth
Here is a 30 minute bar chart of day session e-mini trading. The market has rallied more than would be normal after a supply shock like yesterday's last hour break. Even so, I want to give the bearish case a little leeway. I am leaning on the midpoint of yesterday's range at 1085.50 (purple dotted line) and on the upper channel line of the bearish trend channel I have drawn. Any strength above the red resistance oval I have drawn will mean that the market is headed for 1120, not 1050.