Wednesday, March 25, 2009
40 point break underway
Here is a 30 minute bar chart of e-mini day sessions over the past two weeks. The market has dropped below the low of my range estimate and below yesterday's low on increasing volume - high volume for the time of day. These two facts are good reasons to believe that a reaction about as big as the last one - 40 points or so (blue rectangles) - is underway.
The low should develop in in the 780-85 range, pretty close to midpoint support (lower dotted purple line) which stands at 781. In the meantime the market should not go above midpoint resistance ( formerly a support level) at 811.