Today, I will begin covering the December contract of the Mini S&P Index. The December Mini S&P Index is down 3.25 points at 1024.75 this morning as I write. The enclosed chart shows that the stock index is testing the upper end of the range that was first reached two weeks ago. The upper end of the range in the December contract is 1034.50 which is also today’s highs so far. The directional movement indicators are still bullish and the ADX line has flattened and is trying to turn up once again. For several weeks now, the talking heads have be warning of a correction or worse, a new bear leg down. Yet, all we have seen so far are 2 to 5% corrections only to be bought into and rallies back to higher highs. This is the classic “climbing the wall of worry” that the old timers talk about. This type of scenario can go on for a long time until some significant news takes place. For now stand aside.

Sep. 10, 2009
David Hall