Market Analysis for Dec 6th, 2004
After rolling over into a nosedive that actually broke below Friday's
"Employment spike low" at 1185.75, the E-mini December S&P stopped dead in its
tracks, and has since pivoted to the upside for a return loop to 1190.
The fact that the E-SPZ made marginal new reaction lows in the
absence of downside follow-through argues from a micro perspective,
that the decline from 1198.50 into 1185.25 ENDED that particular
corrective downleg. The question now is whether or not the
upmove to 1190 represents the beginning of a
new upleg, or just an intervening rally ahead of
more weakness that presses the E-SPZ into
my preferred corrective target zone of 1181 to
1179? Right now, the "jury is still out," however
my micro work argues for still more recovery rally, likely into the 1193 resistance area
prior to the inflection point between a bull
more or another downside pivot to resume
the corrective process.
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