Monday, September 13, 2010
Here is an updated version of the 30 minute bar chart of 24 hour trading in the e-minis that I discussed here.
I have drawn a second lower channel line. It looks to me that the market is about to step up to resistance near 1127, the midpoint of the 2007-09 bear market and the level of the mid-June and early August tops.
From 1127 or thereabouts I expect a break to one of the two lower channel lines, no more than 20 points in any case. Subsequently I expect the ES to breakout above 1127, the neckline of a classic head and shoulders bottom.
I think the market is in the early stages of a move that will carry to 1300 and higher.