TFH12 1-11-12

The Emini Russell March contract (TFH12) has continued to trend higher as i suggested in my last post upon this market.  Again the Yearly Profile on the Zone-Trader Philosophy failed to confirm a downtrend and is now reversing to the Zone-Trader Pivot also called the Point of Control the midpoint of the Neutral Zone.  Our focus is now on the Monthly Profile that will dictate the current and short-term direction of the market as well as alert us to any possible reversals.  TF has broken above the top of the persistence zone on the monthly and held the time filter the bulls have taken control of the market on the month.  The top of the PZ on the monthly is 749.20.  TF is also attempting to make a bullish breakout trading at 764.70 very close to the midpoint between MR1 and MR2 which is 767.20.  We need to focus on the monthly to assess if TF will make a bullish breakout on the month and take another leg to the upside or if TF will fail to make a bullish breakout and reverse to the Zone-Trader Pivot on the monthly profile at 745.80.  We assess this by looking for a candle body close above the midpoint between MR1 and MR2 767.20 if this occurs look to buy retrace and expect TF to take another leg to the upside and continue towards the 797.00 target.  If we see a close lower then the low of the prior candle on the monthly profile prior to it making a bullish breakout then we assess this as being a failed bullish breakout and we will then begin selling and taking all sell signals on the intraday profile, and expect TF to revert back to the Zone-Trader Pivot on the monthly at 745.80.  If this occurs expect support at the monthly pivot as the bulls are now in control of the market on the month.