Here is an hourly chart showing e-mini day session trading going back to early September. I have drawn a trend channel on this chart which I believe accurately delimits the market's recent swings around the underlying upward tendency. I think we shall hit the top of the channel within the next 10 days. I have drawn a horizontal, red dash line at the 1126 level which marks the exact midpoint between the 2007 high at 1587 and the 2009 low at 666. The green oval marks my target zone at the confluence of the upper channel line and this midpoint resistance.I also think the November 2 low will in retrospect be seen as comparable in importance to the July 8 low at 866. If I am right about this the e-minis will rally into the high 1100's over the next three months.
2 comments:
Carl,
I guess this means you have now changed your mind about your 100 point retracement from the 1120 level?
You are quite bullish. If we get to high 1100s, that would be a fabulous short opportunity. Its possible, markets can go higher than people can imagine, but if it does, there will be a heck of a wallop that the market takes later on. I see no organic growth in the corporate world, its all cheap money financed growth.
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