Weekly Report on ES - Oct 6th to Oct 10th '08

Dominant TF: weekly, 60mins with Daily lagging behind
Swings: DN-DN-DN (from UP-DN-DN)
Market Direction(daily): short or preferably flat. Following intraday time frames is most recommended, but staying on the side line is fine too.

I wish i could be more optimistic than last week, but the outlook is still negative. It seems that the maket is looking for a bottom even if the worst is technically behind us now. The accumulated mistrust for the several shocks coming one after another will take a loooong to time to digest, and we therefore see no immediate bounce after the bottom is found (1065?)

ES 60mins: a tad too slow to trade in this mad market
Same as last week, we recommend lower time frames here. We can still use this time frame as context, with a target on 1065, i.e. still quite some room downward...

Daily: where is this going to end?
In this high volatility bearish market, we try and pick our targets and it seems we have a good consensus around 1065 - 1070 (MM - Fib) All indicators are pointing down but we'll keep a close eye at our target range now.

Weekly: no mercy...
Negative bias here too of course and a high probability that the market needs to test a bottom quickly. 1000 is now in sight but we have a convergence of targets around 1060 here too which we will have to hit to exhaust sellers, hopefully for good... As said before, the hangover may last quite a while, so i see no rush to really go on a "shopping spree" after the market has settled.

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