Friday, December 15, 2006


Here is an hourly chart of the March S&P e-mini futures. The futures are trading about 12 points above cash right now. I last commented on this market here.

After the CPI number came out this morning the market rallied to 1445.00 in electronic trading but during pit trading has only made it as high as 1444.25.

A rally to resistance on news followed by a couple of hours of sideways action is usually a sign of longer time frame trader selling at resistance. In this instance I don't see much aggressive selling since the hourly ranges remain narrow. So I think we shall see a mild reaction down into the 1437-39 range followed by a renewed rally to 1455 or so.

One of the most remarkable (and unusual) features of this advance is the narrow hourly ranges that have become the norm. Narrow ranges do not indicate any aggressive longer term time frame selling. So the implication is that, normal reactions aside, this market is headed even higher.

The 1511 target for the cash S&P which is projected by my box theory is looking more and more plausible


Anonymous said...

Carl, so is it fair to conclude that you're of the opinion that we're headed towards point 21?

Anonymous said...

Dear Carl,
I am a great admirer of your fantastic work from Bombay, India.
I would like to thank you immensely for all your work since you started this blog and trying to enter the " EDGE" arena.

Sir, your recent comment after the cover of Nov 25th Economist was that the next 100 point move on S&P would be down.

Any opinion whether S&P Cash would go down 100 points from 1437 to 1337 (i.e roughly equal magintude of the fall from MAy highs 1323 to 1223 Lows....)

Also... from the Lows of 1337, rising up again the same distance of previous rise(1437 - 1223 = 214 points) which turns to be 1337 + 214 = 1551 TOP of S&P potential sometime around April-May 2007 ?