Here is a daily chart of the December e-minis going back to the May 2, 2011 top. As you know I think the S&P is in the middle of a bear market which will probably drop the average to 950 or so.Last week the market put in a low at 1068 and has since staged a fast rally. I think this rally is going to stall near resistance which stands between the August 31 top at 1224.00 (green dash line) and the June 16 low of 1246.50 (red dash line). The target area is delimited by the green oval.
My best guess is that the rally top will be in by the end of October. At that juncture I think the market will begin its next down leg of this bear market. The first one dropped the S&P about 300 points. If the second one starts from 1250 and drops the market another 300 points it would carry the S&P to 950.
