Here is a 60 minute bar chart showing 24 hour e-mini trading during the past couple of weeks. I think the drop from 1224.75 is in its terminal phase. I am expecting a final low in the 1180-85 range (green oval).
That target zone is at the confluence of support provided by the 1182 top on October 19 (lower green dash line) and the lower channel line of the red trend channel.
Once this low is in place a move to 1250 or so should start. The March 2008 low was 1253 and it occurred on the Bear Stearns failure. This combination marks that level as strong resistance above the market.
2 comments:
Thanks chief...
Makes a lot of sense!
It is amazing how everyone went from 'this is going straight up....' to ' we are going to pull back in a BIG way to the 50 day MA'
I like your dip area. My only question / concern is whether we re-visit or making a lower low at the end of the week after a really good bounce due to the dynamics of Opex week.
Maybe I will be missing out in a big way, but I just sense that this first dip to your target area will result in a decent rally, but then the mysteries of Opex will create some significant end of the week selling.
THANKS!
-D
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