Tuesday, October 06, 2009


Here is an hourly chart of day session e-mini trading. The market has moved substantially higher today from the pit open. The rally which started from yesterday's low at 1021 has been 35 points with only a few 3 or 4 point reactions. Volume has not been substantial, but the uncorrected up swing is in my opinion definitive. This is a decisive rejection of prices below the low at 1035 (horizontal green dotted line). The implication is that a strong up swing has begun and that the market is headed for 1120. Meantime the 1035 level will now act as support.

I think that a reaction of 8-12 points is likely to develop from today's high (so far) at 1056.75. But I don't think we'll see a break of as much as 20 points until the e-minis reach the top of the bullish trend channel I have drawn. The 1092 level is midpoint resistance and is a good point from which to expect a drop of 20-25 points.


MJ said...


What are your thoughts on market movement after 1120 is hit, or, is it premature to contemplate this ?


andi said...

OK bears..rejoice. TOP is in. This is the first time since july bounce that we would have reversal and SPX would close below 20 MA...it is a high probablity that TOP is in. Next probability is another swing low and then we will see.. (adding shorts here ES1046)