8359 and 8515 are the key support and resistance on the Dow Cash. Whichever snaps first will produce the immediate direction. As mentioned in the 5/5/09 Market Update 8515 is the top of the target zone I had for the move up. It just gave resistance a moment ago on this intraday squeeze back. You can see that the 8359 (bottom of the target zone) gave support today as the low of the day. If they want the 8750 (target of over and holding 8515) hit then they will most likely run the futures up overnight to get the Dow Cash over 8515 so it can squeeze higher.
So 8359 and 8515 are KEY. CIT should be imminent but the market is NOT behaving rationally. Look for under and holding 8359 to confirm CIT and if over 8515 and holding then 8750 area to be hit before looking for CIT
Reference the 5/5/09 Market Update.
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