Wednesday, March 07, 2007

Leg 1 of Bear Break on TREND Chart

Futures Trading Review of last night's S&P E-mini Trades. Bulls came back with a vengence last night. From the Globex low of 1368.75, we hit an intraday high of 1399.50 on the ES. A whopping spread of over 30 points. The 3 x Divergent bottom I pointed out on the Swing Chart did help to create this "sling shot" effect. However, I wouldn't be too "bullish" at this point in time because if you can recall in one of my posts last week, I had mentioned that the sell-off had created some damage on the Swing Charts. The sell-off was so deep that it had inadvertently created Leg 1 of Bull Break on the Swing Charts - Something which previous pullbacks had not done for quite a long time back. And obviously, this move back sees us approaching PRIME territory, on the Swing Charts, to create Leg 2.
Will we see the end of the current Bull Market? Only time will tell...

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