Tuesday, September 12, 2006

S&P Headed Up

Here is an hourly chart of the December S&P e-mini futures.

In the post I made about 90 minutes ago I explained why I had changed my mind about the short term trend direction and believed it was now upward. On this hourly bar chart I have drawn the resistance and support levels which I believe will control the market's action over the next couple of weeks.

First of all, I expect a minor hesitation of a day or two once the market reaches the 1330 level, just above its September 5 top and just below the May 5 top. Support for any reaction from that level will be a 1315.

The next drop of any significance will probably develop from about the 1340 level, although even then I doubt we shall see more than a 25 point break.

I still believe that we shall see the S&P trade above 1400 by the end of the year.

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