Wednesday, July 05, 2006
Here is a 15 minute bar chart showing regular hours trading in the September S&P e-mini futures. I last commented on this chart here.
In this morning's guesstimate I said that support stood at 1277. As you can see the market has moved below that level. I now believe that we shall see a three phase correction which I expect to end near the 1265 level. The break from 1289.75 would there be just about equal in length to the last reaction which carried the market from 1270 to 1246.
Once this correction is complete I think we shall see the market rally to 1310 and eventually much higher than that.