Market update - Mar 20th '09

Spot on again yesterday...

I know a few of you trade shorter time frames taking in consideration the dominant trend from this context information. All I can say is to enjoy it while it's free.
Not that i will necessarily sell it, but large projects can force me to stop this report like I already stopped posting forex information.

Anyway, let's get back to our charts:

ES is now engaged in a healthy retracement which could take it down to 750. While the channel is about broken, there is no indication of heavy selling though. In fact, to confirm our profit taking scenario, prices may even need to creep back to 781-783 to then go lower. Shorter time frames are recommended today and witching can also trick us a bit. On the daily chart, the retracement to 750 is also visible and probably anticipated but it is not confirmed at all so we might just be seeing a pause on resistance level for now. The market can indeed rest also. The weekly chart is also trying to show early signs of optimism and long term players may be looking for some good entry points.

ER (aka TF) tells us a similar story, and we would like to see 406 to hold now. Otherwise, we'll check for a support level possibly as low as 375, to here again also help long term players jump in at a good price.

( posted 7:40 AM UK on this first day of Spring )