Thursday, January 15, 2009
Here is an updated 5 minute bar chart of the e-minis. Following this afternoon's demand shock sellers stepped in. The market dropped from its rally high at 848.50 all the way down to 829. this was slightly below the halfway point of the rally(horizontal green line) and retraced about 70% of the demand shock itself (which I think started at 821). This is perfectly normal. As I look at my quote screen I see that the market has rallied back to 841. This is a sold indication that the demand shock is still controlling the market's trend. Tomorrow should be a bullish day. I expect to see the e-minis make it up to the 865 level tomorrow or Monday.