Monday, November 01, 2010
Here is a five point box, one box reversal chart showing e-mini action going back to the early July low. I have drawn two trend channels of equal width, one on top of the other. I often do this when the market shows signs of emerging above the higher channel line of a rising channel. It is a good way of obtaining an upside projection when the market starts to accelerate in the middle of an extended move.
The purple arrows represent my general expectation of the e-mini's likely behavior over the coming months. I am looking for a breakout above the April high at 1216, then a reaction to the middle line, and finally a strong move to 1300 or above during the first quarter of 2011.