Tuesday, June 01, 2010
Here is a 30 minute bar chart showing 24 hour e-mini trading since the 1036.75 low.
I thought the market would continue its overnight weakness after the open but instead it rallied strongly. The rally carried it above the top of the last reaction (dash green line) prior to its low at 1069. The drop from 1106.75 was nearly 38 points in length as compared with 34 points on the previous reaction (purple rectangles). A strong rally after a drop about as big as the last drop is an indication that the latest drop is over and that the trend has turned upward once more.
I thought today's day session range would be about 20 points. The low thus far has been 1076.75 so I now think the day session high will be 1097 or so.
The ES has established a second higher low. This is very bullish action. I think it means that the market is now headed for the upper channel line and the 1125 level (green oval). We are in the early stages of a move to 1300.