Market Analysis for Feb 8th, 2005

Like I said in an earlier update, as long as support at 1200-1199.50 in the E-mini March S&P contains any forthcoming weakness, then the potential remains for yet another rally that tests 1206.25, and possibly thrusts to my optimal target zone of 1208 to 1211. However, the technical condition underlying the current upmove have deteriorated. So while we might still need PRICE confirmation that this AM's high at 1206.50 represented THE peak of the current upmove, the pattern and my underlying oscillators hint to us that we should be out of the long side at this point. Let's wait and watch the action during the 2-3 PM hour for signs that the e-SPH is rolling over.

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