Wednesday, May 10, 2006
Here is a 15 minute bar chart showing regular hours trading in the June S&P e-mini futures.
Less than an hour ago the Fed raised the funds rate by 25 basis points to 5.00%. The market broke sharply after the announcement but as you can see support at the 1320 level held. I think the next step up should reach 1334 and that the market should be trading near 1350 in a couple of weeks.
The week of June 5 is still the ideal time for a bull market top, but frankly I still don't see the optimism about the future normally associated with long lasting highs in stock prices. We'll have to wait to see whether this situation starts to change.