January Trading Trend is set as the market price increased for the first trading week of January.
January's first five days of trading normally sets the pace for year. Looking at the weekly chart on the S&P500 emini futures for the first five days of trading we can see how the S&P500 hit support and moved up with no sellers really stepping in the way. Presently we are testing the swing highs with support coming in at 1430 and 1400. Market volume was low in the S&P500 emini futures last week with 5.4 million contracts trading hands. This is low for thee week so we could either see this consolidate at the highs or a retracement to 1427-30. On the weekly this could chop around in the top half of the 50% retracement of this past weeks priced action putting the support from the swing high down about 31 points or to 1431 area. The Fiscal Cliff which is discussed extensively on News and other media has dampened the investors willingness to buy into the markets as we can see in the dwindling volume. If we end up in a Doji, where open and closing price are the same (or close to it) for the week, then I would be looking for a continuation this next week. Watch out for low volume periods in the afternoon as this is when Market makers could take out your stops very quickly. January Trading on the Daily Chart, S&P500 Emini futures.
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