Tuesday, November 10, 2009


Here is a five minute bar chart showing the last three days of e-mini day session trading. A reaction has started from today's high at 1094.50. I have drawn the bearish trend channel which appears likely to delimit the market's activity during this normal correction. A correction as big as the last one would carry the market down to 1082 (purple rectangles). The midpoint of yesterday's day session is 1083. So my target for this break is the green oval drawn at the confluence of the lower channel line, the lower boundary of the rectangle, and yesterday's midpoint.

Once this drop is over I expect the e-minis to rally to 1105 or so, just a few points above the October 20 high at 1099. Over the next week or ten days I expect to see the 1126 level.

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