Market Analysis for Dec 16th, 2004

In the aftermath of the post Philly-Fed thrust to new recovery highs at 1210.75, the E-mini March S&P has reversed, and given up its gains for the session--- BUT THE PRICE STRUCTURE STILL HAS NOT BROKEN ANY SIGNIFICANT PRIOR SUPPORT POINT, which would, or would have, damaged the one week uptrend. At this juncture, to do any damage to the micro uptrend, the E-SPH must break and sustain below 1203.75 (this AM's pivot low), and then more importantly, break and sustain below yest.'s pivot low at 1201.50. Only then will the still dominant uptrend suffer serious damage- and in so doing, will trigger significant sell-signals in my work. Until then, we should expect more of the same: lack of downside follow-through on sell-offs, followed by quick bursts of strength-- UNCONFIRMED STRENGTH, but strength nonetheless.

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