Thursday, May 04, 2006


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

In this morning's guesstimate and in this post yesterday afternoon I said that the break below 1311.50 indicated that the market was headed for 1300. But this morning the market broke back above the last high on the way down to yesterday's low atr 1308. Moreover, this upside breakout was on higher volume than the intial break of the day yesterday. Since I am basically bullish on this market I have to take this sort of bullish action seriously and so I now expect prices to move above the 1330 level. If I am right then the breakout level should be support today.

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