Friday, September 15, 2006
Here is an hourly chart of the December S&P e-mini futures. I last commented on this chart yesterday.
I had thought that the market would develop a third phase drop which would take it to 1323 but instead it rallied sharply above the 1330 level early this morning. I think the correction which started from this morning's high at 1336.75 will find support near 1330. At that level it would equal the length of yesterday's reaction.
The next step up should carry the S&P's into the 1340-42 zone from which point I think a drop of 10-20 points will develop.
I still expect to see the market trade above the 1400 level later this year.