Thursday, December 14, 2006
Here is an hourly chart of the March S&P e-mini futures. (This contract is trading about 12 points higher than the cash S&P index). I last commented on this market here.
After the aggressive buying evidenced by the wide range up bar for today's opening hour the market has quieted and has been trading sideways in a narrow range.
I think the buying this morning came from longer time frame traders and investors. Their orders were filled by short horizon day traders. Before the day is over these short time frame traders will probably get tired of sitting with break even or losing trades. To flatten out their postions they will have to bid the market higher. So I expect the S&P's to finish the day on their highs, probably quite close to or in the 1443-45 resistance zone.