Last week's comment that we would see congestion (yet with high vol) until we pass 1000 again was valid and still is. Like with ER, we certainly have an upper bias now which we must observe with a lot of caution.
ES 60mins: 1000 is now in sight
ES has difficulties reaching overbought levels but should try and creep to 1000 indeed. Volatility is still high so i venture seeing the target onthe 60mins chart, but it could a little longer of course. If such attempt fails, we will look at 925 holding for a another round of buying then.
Daily: Same as ER
Yes, the situation is SO similar that i could almost repeat the same analysis. It is difficult to gauge how long the hangover period will last now, but 1000 is undoubtedly THE test level going forward, and at the same time, we'll watch carefully a possible support level (925) if the recovery fails (likely scenario) and if ES is then range bound for a while.
Weekly: quite 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
Monday, October 20, 2008
Weeky Outlook on ES for Oct 20th to 24th '08
