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S.P. 's minis: ESU9:

 As I wrote last week, the first minor low coming off of the high on 8/17/09 (1016.00) will occur on the 6th day after the high and will be roughly 50 points. Yesterday was the 6th day, but the decline failed to reach 50.00 points instead it was 38.50 points down to 977.50, therefore we’re missing 11.50 points, which is important not to forget. This compression differential is either added to the upside or downside, immediately meaning now.

Normally after the 1st minor low we trade the next 2 days up between 23.00 and 26.00 points. Due to the fact the downside still owns us 11.50 points we should continue down until we reach 966.00/967.00 region (roughly 50.00 points),

Although this decline is not 100% accurate due to the compression hole between 1005.75 to 998.25.

Compression holes are magnets, Personally I would feel more comfortable if we headed back up to fill the hole or attempt to. In the event we head back up to 998.25 and fail to close the compression hole, the immediate result is atomic to the downside in price and in volume.

The first potentially significant bounce (short lived 2 days) will occur once we’ve reached the 50 point decline region. I expecting the bounce to occur exactly at 967.00. In the event we fail to significantly bounce at 967.00 then the bounce will occur at 963.50.  

The next minor low will be 13 days from the high at 1016.00 on 8/17/09.  This decline (correction) should terminate on the 22/23 day from the above mentioned high.


Short Term:


Equalizer 980.25

Down Price Target: 968.25

Upside Price Target: 991.00