Market Update

2/3/11

7:51EST

ESH11:

Yesterday’s price action was clearly consolation before the next move up

This should begin soon

Although the initial price action will extremely choppy

From current levels (1298.00) down to 1296.50 then

Up to 1306.25

Then an immediate pullback 10 1302.00 – 1300.25

Up again to 1307.75

Now this is the tricky part

Meaning what occurs at 1307.75

Because we have an extension up to 1310.50 (for this pattern)

Take into consideration a clear break above 1308.75

It goes parabolic

Immediately up to 1321.00

It should continue up in a parabolic fashion until 1330.25

But the price action at 1325.00 determines if we reach 1330.25

It could well sharply pullback at 1325.00

Now Term: (next 13 hours)

1300.50 is the bull/bear divider

Crude:

We’re back in bullish territory

Expect new highs

Although it must reach 97.28 in order to cancel the bearish compression

91.02 is the bull/bear divider