Monday, February 09, 2009

Weekly Report on ES - Feb 09th to 13th '09

Again, markets are very much correlated and we'll here only emphacize on specific prices and possible pattern differences.

ES 60mins: Somewhat overbought ahead of key resistance at 875. This is typical of stall level (867) after a good run end of last week. We'll therefore watch for a first Fib retracement level. One should theoretically be too concerned if there weren't a number of clouds in the sky of higher time frames...

ES Daily: The uncertainty unraveled last week is still around, so we may have some more congestion until a Fib pattern comes out clearly. We remain cautiously bullish even if trading range lows can always be tested again (unlikely though).

ES Weekly: Here again, we have to be particularly careful as Entropy is stalling, Swing is turning south again and MTFS is decidedly quite bearish still. Only that yellow bar gives us a glimpse of hope. Having said that, no gloom and doom here... Let's just watch how we break our trading range at daily level first. All we can say is that the trading environment on longer time frames should remain messy for a while.

( posted 8:30 AM UK )