Wednesday, January 03, 2007
Here are hourly charts of the March S&P futures and the Spiders. I last commented on these markets here.
As you can see there has as yet been no follow through to this morning's wide range, bullish up-bar. In fact the market put in a wide range down-bar over the last hour. I had been expecting an imminent upside breakout but instead we have a continuing battle between the bulls and bears in a trading range that has persisted since December 27.
The market is near the low of this morning's wide range up-bar and such a level is normally good support. I think we shall see the index hold support and close above support today. If I am right then the market will head visibly higher tomorrow. If instead we see a close below 1430 in the futures and below 141.90 in the Spiders I will conclude that the futures are headed down to 1416 and the Spiders to 140.40.
In any case I expect to see much higher prices later this month.