Market Analysis for Jan 14th, 2005
After several hours of trading, once again we notice that
the recovery action has failed to inflict any sort of damage
to the dominant downtrend. To do so, the E-mini March S&P must
hurdle and sustain above 1190.25. Otherwise, all we have
is a traverse of a down-slanted trading channel within the
unwinding downtrend. Frankly, it is both remarkable, and
disconcerting (in a general sense) that the e-SPH has
remained so sluggish for the second week of January-
after a terrible performance during the first week of the
month. Increasingly, this is warning us that the indices
likely are headed for-- and "need"-- a washout to the
downside prior to the emergence of sustained strength.
For now, the bears remain in directional control.
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