Wednesday, December 27, 2006
Here are hourly charts of the March S&P e-mini futures and the S&P tracking stock, the Spiders (SPY). I last commented on this market here.
Both these charts tell the same story, but since there is much more trading interest in the Spiders than in the S&P futures I plan to switch the focus of my commentary to the Spiders from the futures.
The S&P futures and the Spiders have both put in wide range up bars in today's opening hour of trading. This shows that longer time frame traders have raised their bids yet again and means that I must abandon my 1416 downside target for the futures.
I think the S&P futures are now headed up to 1455 and the Spiders to 144.40. If I am right about this then yesterday's highs (1430 in the futures, 141.60 in the Spiders) will be support today.