Monday, January 25, 2010
Here is an hourly chart of day session e-mini trading. The market reached my initial 1090 target for the correction (green dash line) in only three days. I think there is more to go on the downside. A break as big as the October-November correction would carry the market down to 1075 (blue dash rectangle). A break as big as the June-July 2009 drop would end near 1058 (solid blue rectangle). I think one of these two downside targets will be reached within the next week. Meantime resistance above the market is in the 1104-08 zone.
Once this drop is complete I expect a strong rally to the 1200 level.