Tuesday, November 18, 2008

Just another Prozac day...

In this all gloom & doom, the good thing is that markets are relatively easy to read. We'll refer to yesterday's weekly report.

EURUSD: Clear swings. €/$ is aiming at range lows again, more like a continued drifting situation until a strong support is tested. Technically such support should not be too far, so market participants are now a little hesitant.

ER: Should aim at lows again (~440) or lower. That support level is very strong yet there is a potential to break it to finally purge the market right down to 380. Too early to say though.
Energy is low on the 60mins chart, so we may see the eye of the storm today.

ES: Same situation with a possible return to 830. Low short term energy here too, with the same possible scenario of a purge to the low 700s in the longer term.

(Posted 0.01 AM Eastern)