The March S&P e-mini contract has been is a tight 1450 to 1463 balance over the last three days. When a volatile market such as the S&P is contained within a tight balance for several days, a significant move usually follows the breakout from balance.
APPROACHING THE MULTI-YEAR HIGH
The long term trend has been up and the market is within striking distance of the multi-year high. The 2012 high of 1474.75 is the high since 2008. If the market gains acceptance above the 1663 three day high, it may test the 1474.75 multi year high.
LARGE GAP BELOW
On Wednesday 1/2/13 after the New Year holiday, the market gapped open higher and left a large 1425.75 to 1444 gap. If the market gains acceptance below the 3 day balance, it may test the 1444 gap high. Additionally, if the market trades below 1444 and into the gap, it may attempt to fill the gap. However, it is unlikely that the market would fill such a large gap on the 1st attempt.
