Weekly Report on ES - Nov 17th to 21st '08

Last week, i recommended remaining very cautious about turning bullish too quickly and it proved certainly wise didn't it? 1000 is now remote and just like ER, we're now back to lows. ES hit a first Fib target (~820) and staged a modest bounce but bars remained red all the way...

NB: The ER report is more detailed. Please refer to it as markets are largely correlated.

ES 60mins: aiming at lows again
ES follows the same general market direction (c.f. ER below) and could aim back to lows with a target sitting on a Fib/MM level : 827.
However we have some indicator divergence on our adaptive MTFS so we'll wait for a bar or two after the open to review the scenario here too. We cannot exclude the 875 key level being tested again as resistance now.

Daily: not looking good
Same as for ER, we have all indicators pointing down. We will however notice that since the Fib/MM target has already been hit on friday we may see a retracement to the 855 area (Fib PR2) to possible bounce back. In such case, like on the 60mins chart, we would need to pass 875 clearly to pave the way to 1000 again. We have yet NO such indication right now.

Weekly: desperately low...
MTFS is so oversold and entropy is so low that we all know a recovery is bound to happen but this is not at this time frame that we'll time it properly. We will however watch Entropy bottoming up to signal it. We might be just a few bars away, so we'll certainly keep our finger on the pulse...

NB: Like for ER, daily updates will be posted on this blog this week again.