Tuesday, July 13, 2010
Here is a daily chart of the September e-minis. The market is rapidly approaching the down sloping trend line (green oval) as well as the point at which its advance from the 1003 low would equal the advance from the May 25 low at 1032 (blue rectangles). I think the market is about to drop 20-25 points. After that the e-minis should rally to the vicinity of the last top at 1129. From there I think a bigger drop, perhaps 30-40 points will develop. Once it is complete I expect the market to resume its advance to new highs for the bull market.