Tuesday, September 28, 2010


Here is a 60 minute bar chart showing 24 hour trading in the e-minis. I thought that today would be an up day, but sellers came in right from the open and volume was high relative to what has been seen during the past few sessions.

Still, as you can see from the trend channels drawn on this chart, there is no reason to think that this is anything other than a normal correction in an uptrend. A drop from the 1149.75 electronic high made Sunday night which matches last week's 26 point drop would end near 1123.50. This level is also a tad below the trend channel low I have drawn. It is also worth noting that the 1127 level is support coinciding with the levels of the late June and early August highs.

Once this drop is over I expect a move to 1175 and eventually much higher than that.

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