Monday, December 08, 2008

Weekly Report on ES - Dec 8th to 12th '08

Something is brewing here... After another very volatile week, ES is attempting a recovery (breakout).

ES 60mins:
What an amazing recovery on Friday afternoon !!! Despite the 875 level which should normally be tested for support we do have some evidence of a potential runaway situation. It is a difficult environment and to be honest, I myself have been rather following 16K and 32K volume charts lately. Alternatively, a lower time frame is recommended. We will also make sure we take trades in the dominant trend given by a higher time frame.

Daily: breakout situation
We do see signs of a recovery in the MTFS yet the pattern is not indicative an easy ride up so we should see a pullback possibly on 875 key level to provide enough energy to takes prices higher then. For the time being, we have to pass recent highs inches away from 900. Should those highs be passed, we'll check Fib levels on the way to 1000, but we'll remain very cautious in this volatile environment.

Weekly: a blue bar !
Yes, like for ER, even if Entropy hasn't bottomed yet, even if MTFS is about stuck in oversold territory, even if Swing is desperately down... we have a blue bar ! It obviously doesn't mean much but we can get ready for a forthcoming turnaround. Oh well, we all know a swallow does not make a summer, but we might have a good week ahead of us.

Daily updates will be posted on this blog.

(posted 2:20 AM Eastern)