Market Analysis for Jan 3rd, 2005

My intraday work argues that the E-mini March S&P still has more work to do on the downside prior to completing the decline off of today's high at 1221.25. The optimal downside target for the remainder of the move is 1205-1202 ahead of a recovery rally. The intraday pattern carved out by today's decline has the "right look" of a first leg of a larger downside corrective move. If that proves correct, then after a recovery bounce from 1205-1202 to 1212-1215, the E-SPH should roll over into another decline that presses the index to test more critical support at 1195.25.

For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary at. Or try his QQQ Trading Diary.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!