Market Analysis for May 9th, 2005
For today's Mid-Day Minute, Mike writes: Yes, I see the action in oil, and yes, I see that there appears to be no selling pressure in the E-mini June S&P... at least not yet. Have a look at my updated chart analytics of the oil vs. the e-SPM, which shows the extent of the counter-trend rally pattern carved-out by the index since mid-April.
The magnitude of recovery rally, or counter-trend patterns are extremely difficult to gauge... but my work is telling me that in the upcoming hours, the e-SPM will peak and pivot to the downside with some power and sustainability-- the only question is from what level. Right now, I am only willing to risk slightly more than Friday's high at 1182.25.
For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary. Or try his QQQ Trading Diary.