Market Analysis for Dec 17th, 2004

In my prior chart update, my work indicated that as long as the E-SPH did not rally and sustain above 1203.50, then the bearish (coil?) pattern would remain intact-- and the price structure should loop to the downside for a retest of this AM's lows-- on the way to 1193-1191. Thus far, the intraday rally failed right at 1203.50, and just a few minutes ago, the index swooned to retest 1197, which thus far has contained the selling pressure. A break below 1197-1196.25 should trigger a sharp decline into the 1193-1191 next target zone. Only a rally above 1203.25 will compromise the micro technical outlook.

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