Thursday, May 11, 2006

S&P Update

Here is a 5 minute bar chart showing regular hours trading in the June S&P e-mini futures. I commented on the 15 minute chart for this market earlier today.

As you can see the market traded sideways once it reached my estimated support at 1313, then broke visibly below support, and finally rallied back to this support which as is usual in such circumstances became resistance.

Note too how the sequence of rallies and declines which started from the 1330 top shows a steady pattern of lower lows and lower highs. The last rally was the biggest and longest of the rallies on the way down and this is one clue that the next rally will be bigger still and will probably start from the low of the reaction.

I still think the S&P futures will make a low above the 1300 level and if I am right about this then we should see this low around 1306.