Since my earlier post today the e-minis have dropped about 9 points to 1100 and so far have held that level. While I didn't anticipate the afternoon break I do not think it negates the prognosis I offered earlier today, i.e. that the market is on its way to 1130 or higher.
Why? The afternoon break so far has held at the lower boundary of the green trend channel. In fact the drop so far has held above the low established at 1098.75 in electronic trading this morning. It has also held above the Friday low at 1095.50, thus preserving the pattern of higher lows since November 27. A drop below 1095 would negate these apparently bullish hints, but until that happens I am going to maintain the short term bullish stance I announced earlier today.