Monday, September 20, 2010
Here is a 30 minute bar chart showing 24 hour e-mini trading.
The trend remains upward and the ES appears to be advancing within the bounds of the green trend channel I have drawn. I think the market is in the process of breaking out above the 1127 highs (red dash line) established in late June and early August. If it does this will constitute and upside breakout from the head and shoulders formation I pointed out in this post.
However, the advancing issues oscillators I use are showing that the market is overbought. So I expect it to churn around on both sides of 1127 for a while until a moderate oversold condition arises. After than a move to 1174 and higher will be in the cards.
For the time being I think the ES has the potential to hit 1138-40, the top of the channel, either today or tomorrow. Then I think a 20-30 point break is likely before the next up leg begins.