Wednesday, June 09, 2010
Here is a 30 minute bar chart showing 24 hour e-mini trading since the May 13 high at 1174. I have drawn blue rectangles around several corrective moves that have occurred since then. All measure between 30 and 40 points. The rally from yesterday's low at 1041 has so far carried 36 points and 40 points would put the ES at 1081.
Any strength above the 1081 level would break this rhythm of corrective moves and tell me that the drop from the April 26 top at 1216 ended at 1037 on May 25. Until that happens I am going to stick with my view that slightly lower lows lie ahead. Another 30-40 point box below yesterday's low would have its low in the 1001-1011 range. That is the worst I see on the downside before a move to 1300 begins.