Wednesday, November 29, 2006
Here is an hourly chart of the December S&P e-mini futures. I last commented on this market here.
It looks to me like there is another battle going on between bull and bear armies in the S&P's.
Monday's wide range opening hour had its high at 1402.75 from which point an avalanche of selling from the bear army developed. The pace of this selling started to wane near the low of that opening bar at 1392.50.
This morning's opening bar had its low at 1392.25 and from this point the bull army began its advance, putting in a wide range up bar. The move continued just to the point where the bears took hold of the market on Monday; today's high so far is 1402.50!
This is not an uncommon occurrence in markets. In this case I think the bulls will hold their lines at 1392.00 and begin another attack that will take the market above 1403. If I am wrong and the market drops below 1391 then I shall conclude that the bears have the stronger forces and will carry the market back down below 1378.