Tuesday, February 16, 2010
A bullish picture
Here is a point and figure chart showing 24 hour trading in the e-minis. The box size is five points and the chart is a one box reversal chart.
This chart is telling me that the correction from January's 1148 high is over. The 1040 low on February 5 developed at the lower channel line. Subsequent to that low a very extensive period of sideways trading developed and was associated with a sequence of higher lows. Then last night and this morning the market broke above that trading range and visibly above the descending trend line. And all of this is occurring above a rising 200 day moving average.
Note that the point and figure count across the base (horizontal green line) suggests an upside target of 1160 which would be a new high for the bull market that began in March of 2009.