Here is an hourly bar chart showing 24 hour e-mini trading.The drop this past Tuesday to 1155 was a shakeout (red arrow) - a false breakout below the 1162 support level which defined several preceding highs and lows (lower green dash line). Shakeouts usually are followed by fast, extended moves in the opposite direction. I think the ES is now headed for the top of the trend channel I have drawn (around 1200). After a drop to support (higher green dash line) I think the market will resume its move above the 1216 level of the April 2010 top.
