Market Analysis for Jan 20th, 2004

Today is another day where the bears are attempting to effect a correction after rallies from last Thursday's pivots off of lows at 1123 in the March E-mini S&P and from 1516 in the E-mini Nasdaq.

Both indices made new recovery highs this morning, and since the first-hour highs basically both of the indices were in a corrective mode. That's not to say they're going to do any real damage to the uptrend that has occurred since January 2 and before that since the December 10 lows.

But, for the time being, the bulls are resting, and the question is, Can the bears get anything going on the upside?

Right now the actions of the day suggest the bulls are a bit tired and resting ahead of the next upmove.

The only thing that would change the current make-up of the market would be if the indices broke below 1132 in the E-mini March S&P, which would signal to us that there is a micro top on the market and on the upmove from the last significant pivot low in the E-mini S&P, which occurred on January 13 at 1113.75.

So a break below 1132 would argue that this morning's high at 1142