Market Analysis for Jan 18th, 2005

The enclosed 3-session 15 minute chart of the E-mini March S&P shows that the index is consolidating at the top of today's range, but below the critical resistance plateau at 1195-1197. The action during the past 2 hours has the look and the feel of a high level intraday congestion area-- or bull flag formation-- which should resolve itself to the upside in a thrust to new intraday highs at 1198 to 1200. My optimal target zone for the completion of the current upmove is 1200-1205. Only a decline that sustains below 1189 will wreck the near term upside potential of the current pattern.

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