Here is an hourly chart of the December S&P e-mini futures. I last commented on this market here.
I thought that the S&P's would halt their rally near 1391 and then take out the 1378.75 low by a couple of points. But instead you can see today's first hour showing a wide range entirely above 1391 resistance. Just as significant is the fact that this bar is overlapping the wide range downside breakout bar that kicked off the drop to 1378.75 early Monday.
I conclude that 1378.75 was the reaction low and that the futures are now headed up to 1418-20 resistance.
3 comments:
Carl:
just a suggestion, but you shd provide more reasons for your belief, I think this and I think that a very vague, how can we follow your reasonig based upon that? Also, the road to 1420 will not be straight up! What made you think we wre headed back down to 1378??
Jim
Carl,
So, for those of us following along. Would now be the time to re-label point 23 to point 17? Or, would that be too hasty?
Matt
Hi Carl:
the ES left a nice gap here this morning. In light of your earlier forecast for 1378 coupled with the fact that GDP expanded because of inventory building (that's actually bearish news) we could still se 1388 before your 1420.
Jim
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