Tuesday, December 20, 2005
Here is an hourly chart showing pit trading in the March S&P futures.
I thought the market would react to 1264 and the low today thus far is 1264.70. I think we have seen the reaction low and that the market is now headed for 1298.
One piece of evidence supporting my view is today's number (thus far) of advancing issues on the New York Stock Exchange. The daily number is recorded by the black line in the second chart above this post. As you can see today' s price low was lower than yesterday's but the today's number of advancing issues is higher. This is a minor divergence to be sure but it is typically associated with the lows of brief reactions.