Sunday, January 25, 2009

Weekly Report on ES - Jan 26th to Jan 30th '09

Again it is almost pointless commenting ES this week as patterns are VERY similar if not identical to ER's (see report and snapshot below). We shall therefore only mention specific key levels here.

NB: it is again recommended to swap the 60mins chart for a 32000V chart.

ES 60mins: ES seems like glued to the [812-822] range. The lower range boundary is however a very strong support, so shall we see this target as a jumping board ?

ES Daily: While MTFS seems to show a possibility of "landing" in oversold territory it is too early to say so we'll remain cautious that we may just as well crash to last year's lows (~722) if this 812 level doesn't hold. Let's just be cautious and not panic. There are early signs that this price area could well be our bottom where ES could climb back. I'm afraid we'll have to wait a little longer to see which scenario will prevail. I'll personally favour the bullish one (Swing has toggled UP after all).

ES Weekly: Same weak or 'failed' recovery pattern as explained on previous reports. Those who chose to go long on an aggressive limit order must have been filled and a stop near or below last year's lows is in order. At the same time there may be no rush to enter long as ES may find it hard to take off in the short term and as mentioned above can come all the way down to test lows again...