Gathering strength... or is it just a retreat...?

Yesterday, i anticipated there wouldn't be much room upward and that the market had to pull back a little to "prepare for battle" particularly 1000 on ES. The retracement occurred stronger than i anticipated, but can we really be surprised still in this high volatility environment.

At least the retracement is now engaged and we just have to gauge where support will be found.

EURUSD: I had that Fib/MM target, but admittedly did not dare publishing it. It is a Fib target on the Daily chart (1.272), it is a MM level (1.281) on many time frames, but here again, volatility really took us all by surprise. At this point though, stops must be tightened. No reversal at this early stage, but the drop can be stopped near this low level.

ER: drifting should continue, but this is only congestion at a higher level even if one can see wild swings in an intraday basis. ER could retrace to below 520 (511?) but this is not a return to bear mode yet. We're only gathering strength for now... Will that be enough? We'll know soon enough.

ES: same situation... Yesterday i anticipated a return to ~968 levels, but it was traversed and even tested for resistance later in the day, so selling should normally continue. Having said that, again this is only a 'drifting congestion' here too, so while we may reach a target support in the low 940s, there is still no indication of a return to bear mode. At the same time, 1000 looks now a notch stronger so that's a real battle we may have up there later on...

(snapshots available on request)