Thursday, September 09, 2010
Here is an hourly bar chart showing 24 hour e-mini trading in the December contract. I have drawn an estimated trend channel on the chart. The 1100 level was resistance arising from the August 18 high at 1098.75 in the September contract. I think the market is in the process of moving above 1100 resistance. When it succeeds 1100 will become support.
The next upside target is the 1127 level which marks the June and August rally tops. I doubt we will see more than a 20 point break from there. If we do a subsequent move to the upper channel line would carry the market at least to 1140 and more probably close to the next resistance at 1175, the May rally high.
I think the ES in in the very early stages of a move that will carry it to new highs for the bull market that began from the 2009 low at 666.