Prices opened trading today at 1087.75, up 2.75 points from Monday’s 1085.50 close. Prices quickly moved down and hit a low of 1084.25, closing the gap and hitting support in at 1085.00. Prices lacked the commitment to move through support, turned and began an ascent up through the rest of the day. Prices traded to a high of 1101.50 today, where they were met with resistance and settled to close the day at 1099.00.
Buyer volume was up slightly today at 2.1 million contracts, but much lower than the volume we saw during last weeks trading. With this move up on lighter volume to the 13ma, we will be looking for the necessary commitment of the buyers to push prices much higher than the 1100-1106.75 levels. Watch for a turn back to the down side tomorrow as sellers could be getting back in the game after this touch up, if we begin to move back down 1085 will be the first target with 1077.50, and 1069.00 to follow. I am expecting an increase in volume over the next day or two to about 2.75 million which should give this market some good direction. If prices do not return to the down side we could be looking at re-entering our previous uptrend channel. Targets on the upside will be 1106.75, 1112.50, and 1120.00 as an extreme high.
Only time will tell the story… See you at the starting line!
