11-29-11

The Emini Russell found some resistance today after some continued upside movement from Monday's higher gap open and close as compared to Friday's close.  The ZoneTrader weekly profile generated a failed bullish breakout and suggested to look for sells around the 698 price area.  The monthly profile has already generated a bearish breakout which suggest to sell the first retracement, it appears the majority of the 1st retracement has occurred and we are now looking for the sell signal to generate and start the next wave to the downside called the bearish confirmation wave.  The bulls have been active the first 2 days of the week after Black Friday but i expect the Russell (TF) to take one more leg to the downside over the next couple of days.  Whether or not we can take out the low of the prior week 661.50 and possibly break below the ZoneTrader pivot on the quarterly profile is another question.  There was a sell signal at 696.70 around 1 pm pst that is up 3.7 points currently based upon the close of today.  If the overnight market happens to take out today's low look for the selloff to continue with first target 686.60, second target 681.40, third target 664.50