Market Update - Mar 26th '09

The retracement we expected came quite suddenly yet remains limited if we look at the average range on the daily chart.

ES is still blocked on the major resistance level trying to go higher and it looks like it could break it to unleash some energy to reach Fib PR2 in the high 830s in the next couple of days. Again the overall look on daily and even weekly leads us to think the bottom is behind us but a substantial retracement (750?) is in the cards still, so buyers will have a better entry point by the end of the month.

ER (TF) follows a similar path with a target in the high 430s then 446.
Retracement is also necessary here, so we'll update our scenario when we get closer to next pivot point.

( posted 1:45 AM UK )