Friday, May 19, 2006

S&P 12:45 EDT

Here is a 15 minute chart of the June S&P futures. I discussed this chart earlier this morning.

Contrary to my expectation the market took out yesterday's low at 1261.50 but spent only about 7 minutes trading below that level. This new low at 1258.25 makes today's first hour high at 1270.00 the high of the last reaction on the way to the low. As you can see a few minutes ago the S&P's took out this high and this tells me that a three phase rally is underway.

My best guess now is that this rally will carry the market to 1295 or so over the next week.

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