... going with the flow ...

Is the bottom behind us? I've been undecisive lately as it can be so, or at the same time, we may still see a full-on purge to the low 700s on ES. We have certainly seen some improvement, now let's have a look where it could lead.

Note: there will be no report tomorrow, but i'll try and post a short update on market close.

EURUSD: good recovery and resistance have been broken leading the way to 1.32 ... or even all the way to 1.37 ! Our MM stall level (~1.22) was not quite reached and our scenario is now updated to a possible return to 1.27 Obviously, we have conflicting pressure from deleveraging currently strengthening the US$ and the phenomenal amount of public debt which should weigh on the US$, so volatility is here to stay in the short term.

ER: Testing 500 now. Is it going to break it...? Probably not, but who knows. Most would be long now (60mins chart) and would just tighten stops a bit just in case. It is so far only a retracement trade (contrarian) on the Daily chart. Again, on a middle term outlook, ER is likely to go lower at least once more.

ES: Are we now going for the big "1000" battle? Possible... Again, one should only go with the flow. 967 is a MM stall level that was hit yesterday, so we'll watch that level again today. One could then either try and hit 1000 or just as well retrace back to 930s.

Keep an eye on shorter time frames, and watch out for more volatility on GDP Q3 announcement tomorrow.