Wednesday, November 03, 2010
Here is an hour bar chart of 24 hour e-mini trading. I last commented on this chart here.
The market is in the process of easing out of the 1155-93 trading range which has contained it for 3 weeks. I still think a brief dip to the 1180-85 area is likely before a rally develops which will take the e-minis to and above the April 1216 top (horizontal red line).
This market has been rallying for 4 months. Yet at the moment my 5 and 10 day advancing issues oscillators have just started to rally from oversold conditions. This makes me believe that the ES will move above 1216 before it breaks as much as 30 points.
I want to reiterate my view that this is a bull market, one which began from the March 2009 low at 666. It has much further to go. My most conservative estimate is 1300 by April 2011.