Wednesday, November 23, 2005
Here is an hourly chart of the December S&P futures.
The advance from the October low at 1172 has been relentless. The market has now reached the top of its current box at 1268 and I think at least a modest reaction will be the next development. The previous three breaks have been between 10 and 12 points in length and my best guess now is that a reaction from 1268 will find support 12 points lower around 1256. A less likely development would be a drop to the 1/2 point of the current box at 1246.
In any case much higher prices still lay ahead. The next short term upside target for me is 1280 and I think the market will reach the 1350 level in a matter of a few months.