The futures market has held onto the afternoon gains heading into premarket trade on Tuesday. The price action is not strongly in favor of the bulls as we approach the opening bell due to the series of slightly higher highs, but there is a good chance for another day of nice intraday trend action before things slow down ahead of the three-day weekend.
Data still to watch out for this wee include existing home sales on Wednesday and durable goods orders, personal income and spending, weekly jobless claims, consumer sentiment, and new home sales on Thursday. My larger bias has not changed. I still favor a larger weekly correction into the New Year, but will be monitoring the smaller time frames for positioning. While the larger time frames can serve to help establish a bias, it's the smaller ones that offer the initial triggers and pattern confirmation and we aren't seeing that just yet.
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.