Market Analysis for May 26th, 2005

Today we provide closing analysis, as this is our final post until Tuesday morning. The daily chart of the E-mini June S&P argues for more upside, despite any minor set-back that might impact the index during the micro term. As long as today's low at 1191.25 remains intact, my work points to still more upside into the 1204-07 target zone. Thus, in contrast to the hourly chart, which will trigger initial negative signals on a break below 1195, the daily chart focuses on a break of 1191.25, which will signal and confirm that the near-term uptrend is taking a breather and will press towards a test of more critical support at 1186.

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