DOW E-mini Report 26th Dec 2007

Trend:- Bullish

Trading above Monthly and Weekly 50% level

3-day cycle BUY.


Short-term:- Expectation of a reversal back down to re-test Support (Weekly 50% levels)

Risk levels for this to happen is:-

DOW 13665

ES 1514

Above those levels and probability is that the Weekly trend will continue higher into Friday.

Failure and reversal would be a test of support. There is such a large gap to the 3-day lows, that I would look for a 2-day 'stall-reversal' pattern before any UP trend would continue.