Here is an hourly chart of the cash S&P 500 covering the last five months activity. I have highlighted the support and resistance levels I can compute using midpoint methods.
By far the most important level is the midpoint of the November-January rally. This resistance level stands at 842. On the way down from the January top you can see a trading range that lasted about three weeks. The midpoint of this range is 840. So I think the market will stall for at least a couple of weeks once it reaches the 840-45 range.
The most prominent support level I can see for the market now is the midpoint of last week's reaction which carried from 803 to 766 in the cash S&P. This support level is at 784 which corresponds to the 781 level in the e-minis. I think that sometime during the next couple of weeks we shall see the market trade near that level.
Do you see us entering a new bull market..or is this rally full of bull????Thanks, Janet P.S. Someone earlier commented on your never answering anyones' questions...Why don't you start a members only blog and charge a nominal fee,ie say 50.00. I would join and you would be able to get rid of some of the rif-raf at the same time. We would very much like to have more tete-a-tetes with you.
Carl, nice call! impressive! it has/almost hit your 840 target.
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