Market Analysis for Mar 21st, 2005
The E-mini June S&P has pivoted off of this AM's new reaction low
at 1182.50, and already has popped about 8 points, in
what my work argues is an oversold, but counter-trend
rally effort, which when complete, should resolve itself
in another powerful downleg towards 1160-1140. For my
purposes then, this move is a set-up for a new short
position. The only question is where? For the time being,
and at the risk of annoying some of you who want to participate in such a move, I will watch from the sidelines
for a while longer-- with the intention of re-entering short
positions (in the direction of the underlying trend). At this
juncture, only continued strength that hurdles resistance
at 1193, and again at 1198 will argue that the magnitude
of the recovery process could be greater than I envision
at this time. MJP 03/21/05 12: 25 PM ET (1189.50)
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