Here is a 30 minute bar chart showing day session e-mini trading for the past two weeks. As you know I think the market is building a top below 1250 resistance. When it is complete I expect a break of 50-75 points.However I think there will be a couple of short term buying opportunities while this top is being built. The first one is upon us. The early November top in the December '10 contract was 1224.75 (red dash line) and I think this level will prove to be support. The last reaction was nearly 18 points measured by 24 hour trading and a reaction of that size now would end also at 1225 (blue dash rectangles). I have drawn a green dash trend channel on this chart. Yesterday's low occurred right on the lower channel line but I am guessing that the market will drop a little more into the green oval target zone before this reaction ends.
The next upswing should carry the ES to 1250 or so. From there I think another 20 point drop will develop within the context of the top building process.
