Friday, September 16, 2005
Here is an updated hourly chart of pit trading in the December S&P futures.
Yesterday afternoon I thought that support at 1235 (blue line) had been broken. But overnight the market recovered smartly back above that level so in this morning's guesstimate I said that yesterday's low was the end of the reaction and that the market was headed up to 1268, the top of the current box.
Notice that in pit trading this morning the market initially reacted back to the 1235 support level and then turned higher. This reinforces my belief that the break below 1235 was a head fake and that the bulls are now back in control.