Thursday, January 25, 2007
S&P's Spiders, and QQQQ's
Here are hourly charts of the S&P's, the Spiders, and the QQQQ's. I last commented on these markets here.
The market has dropped sharply today and the S&P's and Spiders have dropped below the estimated support I cited in this morning's guesstimate.
Big declines typically don't begin with a sharp drop on the day the high was made. I think this afternoon's wide range down hour (highlighted in red) will prove to be exhaustion and that longer time frame traders have been buying this break. If I am right about this the markets will not trade much below the last hour's low or below the support levels I have illustrated on these charts.
I think the Spiders will soon resume their move up to 145.00 and that the S&P's will rally to 1455. The Q's should rally into the 47-48 range.