Wednesday, May 24, 2006

S&P Update

Here is a 15 minute bar chart showing regular hours trading in the June S&P e-mini futures.

Earlier today I said that I thought the market had made a higher low at 1255 and was about to rally over the 1270 level. In the event only a brief rally ensued and the market subsequently dropped to the 1246.75 level, the low in electronic trading after yesterday's close.

This makes this morning's high at 1267 the top of the last rally prior to the low. I think I see two consecutive higher reaction lows on the 15 minute chart since the 1246.75 low and this is a small piece of evidence that the market is about to rally above 1267. Once this happens it should move up to 1285 in a typical three phase corrective move.

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