Tuesday, October 26, 2010
trend still up
Here is an hourly bar chart showing 24 hour e-mini trading. As you can see yesterday's high fell short of my 1200 target at the top of the red trend channel, but today's low at 1174 (and I do think this is the low of the drop from yesterday's 1193 high) did not reach the low of the channel either.
This makes me suspect that a new, steeper channel is in the making and I have drawn it in green on this chart. If I am right the market will rally to the green oval, the confluence of the upper channel lines and the April 2010 top at 1216 (red dash line). This upside target is the 1210-16 zone.
I still think that the ES is headed for 1300 and higher by April 2011.