Thursday, April 06, 2006
Here is an updated 15 minute bar chart of the June S&P e-mini futures. I commented on this chart this morning.
The rally from today's low at 1310 was the biggest continuous upswing in the move up from the April 4 low at 1302.24. It also broke the high of the small rally that occurred this morning. In addition the selling that came in this morning and again this afternoon was not able to unbalance the market enough to sustain a fast move down. This contrasts with the market's action the previous three times it took a peek above the 1317 level as I remarked yesterday.
Since I am bullish on this market in any event I interpret this price action as indicating an imminent breakout above 1321. It still looks like the bears are running out of ammunition.
If a breakout is indeed imminent we should see the market trade above today's close as soon as the pit starts trading tomorrow.