Monday, January 12, 2009

Weekly Report on ES - Jan 12th to Jan 16th '09

ES and ER are certainly largely correlated hence it is always worth reading both reports (ER report just below). However information is sometimes clearer on either ES or ER.

So, same story as ER's with the "airhole" turning into a sizeable retracement on the lower time frames. Again, no surprise.

We remain relatively bearish in the very short term (the dominant time frame is 60mins) and again we recommend following our 32000V volume chart today. It is difficult to provide an accurate weekly report until we have tested a support level and our patterns redrawn accordingly, so please check back for our daily updates posted early morning.

ES 60mins: Same bearish pattern as ER with a target clearly in sight on 875. Fall may stop on stall level (friday lows) or slow down until it finally comes close to target. If support isn't found there, ES may retrace all the way back to late december lows (low to mid 850s).

ES Daily: While staying in the same channel, ES should hit its low boundary for support (~875) or lower near Fib retracement level (~864). We are however not necessarily bearish over the longer term.

ES Weekly: Same weak or 'failed' recovery pattern, so as for ER we know we can either trade short on lower time frames, or try an aggressive long limit order or... stay on the sideline a little longer.

NB: There will be no market update on Wed 14th.

(posted Monday 12th 7:40AM UK)