On 7/8/09 the emini S&P futures (basis Sept) bottomed at 865.25. On 7/15/09 we received a longer term buy signal. The market then very quickly rallied to 994.00 on 7/30/09 on better than expected earnings reports and economic indicators showing more potential for a stabilizing economy.
However since 7/27/09 the market has been trading sideways. Each time it tries to move higher it tends to come off its highs or come off of its lows, even though the market has been up most of the trading days since 7/27/09.
Currently we do see the market caught within a resistance area of 966 to 1000. If the market can break above 1000, the next trading range could be 1016 to 1092 and ultimately 1192.
With that said, the S&P has just experienced a dynamic move in a very short period of time. There is some potential for the market to consolidate before moving higher especially when so many are looking for it to hit 1000.
There is support in the 979 to 975 area. If the market should fall below this range the next support level would be 971 to 966. Since 7/15/09 the market has not seen any consolidation. Any hard sell off could see the market find major support in the 957 to 948 area.
However since 7/27/09 the market has been trading sideways. Each time it tries to move higher it tends to come off its highs or come off of its lows, even though the market has been up most of the trading days since 7/27/09.
Currently we do see the market caught within a resistance area of 966 to 1000. If the market can break above 1000, the next trading range could be 1016 to 1092 and ultimately 1192.
With that said, the S&P has just experienced a dynamic move in a very short period of time. There is some potential for the market to consolidate before moving higher especially when so many are looking for it to hit 1000.
There is support in the 979 to 975 area. If the market should fall below this range the next support level would be 971 to 966. Since 7/15/09 the market has not seen any consolidation. Any hard sell off could see the market find major support in the 957 to 948 area.
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