Tuesday, March 17, 2009
Market's sometime develop habits that persist for a few days and then disappear. The e-minis rallied about 21 points from this morning's low and made a top about thirty minutes later than yesterday's high was made. Volume during the later stages of today's rally was feeble. I have a very strong suspicion that we have seen today's high and that the market is headed down to 730. If the drop from today's high carries below 759 (purple dotted rectangles) it will be the biggest reaction of the day. If it drops below 755 it will violated support (horizontal purple dotted line). I think we shall see a print below 755 during the next 90 minutes and if we do we shall have strong evidence that the drop from yesterday's high has further to go.