Tuesday, January 09, 2007

S&P's, Spiders, and QQQQ's

Here are hourly charts of the March S&P futures, the Spiders, and the QQQQ's. I last commented on these markets here.

Early on each of the last three trading days aggressive seller have come into the market and pushed prices down to what I believe is support in the S&P futures and the Spiders. In none of these three instances was there any significant bearish follow-through selling. I think this is significant and is telling us that longer time frame buyers have been active at support which stands at 1414 in the futures and 140.40 in the Spiders.

If this deduction is correct it follows that the market must move higher to attract longer time frame sellers. I believe this is about to happen and that the advance will carry the S&P futures to 1455, the Spiders to 144.40 and the QQQQ's into the 47.00 to 48.00 range.

Even if I should be dead wrong about this imminent rally I think any trip below yesterday's low point will be short and brief. In that case I would expect the futures to hold support near 1407 and the Spiders to make a stand near 139.60.


Anonymous said...

do you think the rally might be put off until next week for options expiration?

Anonymous said...

What is your opinion on the Elliot Wave analys view of this is the start of a large drop in the stock market?

Anonymous said...

Dow jones should go to 12.070-12.100 in few days.Europe weak.