Today, I am going to begin following the March contract of the Mini S&P Index.  The March Mini S&P Index is up 11.75 this morning at 1101.75 as I write.  The included chart shows that the S&P index is attempting to test back towards the recent price highs at 1107.00.  The chart is bullish as the S&P continues to make higher highs and higher lows.  This current rally is important to see whether prices can continue to make new highs and press on higher.  Based on the last few months of trading, the S&P should be ready to correct to the downside.  The directional movement indicators have been bearish recently but act like they may cross bullish today if the rally holds up.  So, today’s rally attempt is important to watch to see whether the recent highs hold back this rally or not.  Some of my other indicators are mixed on the strength of this rally.  So, I recommend standing aside in the S&P for now.

David Hall

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