Monday, March 09, 2009

Weekly Report on ES - Mar 9th to 13th '09

Obviously, ES is correlated to ER and other markets, and therefore is also going south.
Let's have a look at specific levels for this symbol.

As mentioned on previous reports, prices try and stay in a given price segment, oscillating from volatility and noise, and only a change of referential, like news about rates etc tend to make prices shift.
We are now in the [656-687] price segment and it is quite common to see the upper boundary being tested as a resistance.
If so, ES will be sent down, which is the most likely scenario in the short term. Again, news can make the scenario quickly obsolete also.
Target on the way down is in the [656-661] area, and should this fail to hold, we can already see much stronger support in the 620s.

It is preferable to have all time frames in perfect sync, but while 625 is also a likely target here, the next "stop" seems to be just below 650. Again in times of high volatility, levels can be penetrated without breaking.

Same story, and to be honest, we can't see what could stop ES from hitting 625 now.

( posted 7 AM UK )