Friday, December 02, 2005


Here is an updated hourly chart of pit trading in the December S&P futures.

My view right now is that the market is headed for 1285 (black line) before another 10-20 point reaction develops.

Notice, though, that the market has been hesitating for several hours at the top of its current box. For this reason I would now regard a drop below 1262 (purple line) as a downside breakout from this several hour trading range at the top of the box. This would switch me to the view that the market would once again drop into the 1246-50 zone before the rally to 1285 can resume.

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