The curiously orderly gyrations of the past week have thus far held above a crucial low at 1754.00. Its breach would create a technical storm cloud that we haven’t seen in a long while — i.e., a bearish impulse leg on the daily chart. My gut feeling is that the mess will resolve to the downside, but that the next important low will set the futures up for a rally to new record highs. We’ll be better able to judge the likelihood of this once we’ve seen this vehicle either break down, or break out (ever so mildly, to start with, via a push on the hourly chart above above 1816.00). For the time being, however, the E-Mini is for day traders only.
