Friday, March 27, 2009
Out of the Box
Here is a five minute chart of today's e-mini trading. It looks like the market is falling out of the range box on increasing volume (red arrows). The fact that this breakout occurred immediately after an wide range up bar on high volume (green arrows) is especially bearish. I now think that the high of the day is in place. A 25 point range would put the low of the day near 796 (blue rectangle). If the market is indeed going down then I don't think we shall see it rally even as far as the purple dotted line, the midpoint of this morning's trading range near 816.