Tuesday, August 17, 2010
Listening to the market
Here is a 30 minute bar chart showing regular hours trading in the e-minis. After spending three days trading below the last low at 1083.50 (horizontal green dash line) the market today opened well above it. So far it has traded as high as 1090.75 which puts it right at the top of a small trading area that formed late on August 11 (red arrows).
Any strength above 1092 and especially a close today above 1085 will be very bullish. It would represent an upside breakout from the lower blue dash trading area, one that is almost as big as the one which started this break (blue rectangles). Such action would make me abandon my 1050-60 target and start looking for continuation upward to 1140 and higher.