Market update - Feb 18th '09

Most would have gone happily short yesterday, as indicated in yesterday's report. Let's now assess where support levels are likely to be found.

ES: Fib target and stall level are now around 770, but we are obviously so oversold on our 60mins chart that a timid bounce to high 790s is possible at first. Some could take profits here and play shorter time frames.
Possible support level at 781 also.

ER: while the situation looks similar, levels are not quite the same and there is some (limited) bounce potential around current lows. Prices should however settle lower (high 410s or maybe even lower).

At this point, we're not too far from thinking we'll have to test November lows to get out of this...

( posted 7:30 AM UK )