Tuesday, March 09, 2010


Here is an hourly bar chart showing day session e-mini trading. It is an updated version of the chart I last posted here.

As you can see the market is approaching the top of the third box in a stack of 36 point boxes (blue rectangles). The January 11 top was at 1148 (dash red line). The top of the green trend channel is roughly 1150 today. I think the market is about the enter the short term target zone outlined by the green oval.

Once this target zone is reached I expect the next significant development to be a break about as big as the previous break from 1112 to 1084 (purple rectangles). That should bring the ES down to the lower trend channel line too, as well as to midpoint support near 1127 (the midpoint between the 1587 high and the 666 low). Once that reaction is over I expect the market to resume its advance to 1200 or higher.

1 comment:

Teich said...

I think your 3 boxes, starting at the low at ES 1040, are consistent with the chart pattern "measured move up":