Friday, July 28, 2006
Here is an hourly chart of the September S&P e-mini futures. I last commented on this chart yesterday.
The market bounced off of support at 1268 and in this morning's guesstimate I said that I thought the bounce was the second phase rally and would stop around 1276. But the market is proving even stronger than I have expected and a short while ago broke above yesterday's high at 1281.75. I now think this upmove will continue to 1288 or so (the July 7 high was 1290 in electronic trading).
The main thing to keep in mind is that this upmove is only the initial stage of a move to 1350 and above which should develop over the next 3-4 months.