Weekly Report for ES - Oct 13th to 17th '08

OK, last week was a terrible bloodshed we followed day by day, and we now wonder after Friday's bounce if there could be more...
We'll give a chance while staying very cautious. More than ever before, short time frames are recommended as they do respond better to shocks, spikes, or high frequency dynamics in general.

ES 60mins: again it is a still a little to slow and at this time frame, while there is a recovery in progress, indicators have not responded fully, and we need to pass the 24% and test the 38% Fib retracement level first. A long way to go...
In the meantime, we may see the "hangover" mode for a while until confidence returns to the markets. Staying above 875, and then 925 would be good enough for now before attacking 1000 (Fib level).

Daily: No rejoicing yet
While we are seeing an interesting bounce, here again, we have to wait for Entropy to bottom up and for MTFS to crssover nicely. Until then, we may see some congestion below 1000, which will be THE test level going forward. If volatility stays this high, we may see 1000 being tested within a couple of days. I would give it a week...

Weekly: dangerous still
We still have a pretty bleak picture here and Fib/MM targets do not look too good. Obviously extreme volatility often causes levels to be stretched without breaking making scanerios difficult to separate. Again, we'll see whether 1000 is tested and passed soon, taking into consideration that bears could try and take the market somewhat lower...

ON ACCOUNT OF THIS EXCEPTIONAL MARKET SITUATION, SNAPSHOT UPDATES WILL BE POSTED ON THIS PUBLIC BLOG THIS WEEK AGAIN