Thursday, March 25, 2010


Here is an updated version of the chart I posted yesterday. As you can see the market has nearly reached the short term target zone near 1179 (green oval) which stands at the confluence of the two upper trend channel lines. I think the next development will be a reaction of about the same size as yesterday's (purple rectangles). It should carry the e-minis down to the red oval which also rests at the confluence of the lower channel line of the steeper trend channel and support provided by the last high at 1165.50 (red dash line).

Once this reaction is complete I expect the ES to resume its rally to 1200 and above. The next step upward will probably carry to 1190.


spycharter said...

I agree. This coincides with a gap fill on SPY by dropping to 116.8

Teich said...

What a great, timely call!