Tuesday, December 05, 2006
Here is an hourly chart of the December S&P e-mini futures. I last commented on this market here.
The market has traded as high as 1417.50 this morning, a little shy of the 1418-20 resistance zone. But I do see a wide range up bar at the top of a big rally. This was a high volume hour stimulated by the release of the purchasing managers' report at 10am ET.
I think this wide range, high volume up bar on news just below resistance is telling us that the up trend has reached a temporary exhaustion point. I think the market is about to drop to 1405 or so and then will begin another rally which will carry it close to today's high.