Bloody monday...

Oh well, didn't i say yesterday it could only go down... On ER i dared mention a possible target of 577 without thinking it would be reached so quickly. On ES i gave a target of 1065 which was reached in the 1st hour of trading ! Defeats the point of a so called weekly report, doesn't it? Remember: Volatility is a form of time compression in itself.

So what's in store for today, considering the above.

EURUSD: same down channel for now, yet levels haven't yet changed. In the short term, €/$ should try and stay above 1.355 but there is still a long way to go to break the channel upward and there may be a few interest rate cuts here and there to shake the system a bit. Sticking to short time frames is therefore most recommended.

ER: is the worst over? maybe, but again we have to go through a 2nd hangover period and no substantial recovery in sight. We need a sort of double bottom of cup & handle to confirm yesterday's lows as a support level. Short intra-day time frames should be good fun though. If anything, pick the top of this wave and sell short again in the dominant trend. Staying on the side line until volatility subsides is also fine.

ES: Same situation. Yesterday ES fall stalled... on MM stall level, so it's good to see indicators still responding fine in this mayhem. Now, same diagnostic with a similar need for a confirmation of a bottom.

There are lots of bargains in the market right now, and this shake-up will only eliminate the weaker ones...

Believe it or not, markets also follow the laws of Nature...

(screenshots available on request)