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Thursday, May 26, 2011

I called for a pull back to 1310 but the market stopped short of my target at 1312.50. From there it rallied to the resistance / Now Support at 1324.50, testing that level twice before breaking through. This is nearing my target at 1332 tomorrow . There may still be some resistance in this proximate level, but the market has entered into the next range above as seen in the Volume Profile.

The two Red Forks intersect at the 1346 level of Horizontal resistance. Expect the market to test this level by next next week. The 1336-1338 area is quite important (reference the Volume Profile), if the market fails to push though it I believe 1300 and lower will be tested.

Basically I'm near term Bullish, but building my short position

We did not get the pull back to 1310 that I had expected. 1322-1323 will probably not hold as resistance, and I expect to see buoyancy up to the 1332 level.
This could take us out through the top of the wedge, but I'd be a cautious Bull if I were long. 1346 by next week Wednesday is about as far as I see this move going.

1315 e-mini has provided support as predicted.
Thursday should see a pull back to 1310,

and then a bounce to 1332 sometime on Friday.

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