Market update - Apr 22nd '09

ES bounced as expected, even if we have to realize that high volatility always increases S/R levels' elasticity. The fall was therefore stopped 3 points lower than the 828 level followed by a bounce to 848.5 i.e. 5 points higher than our resistance target yesterday.

On the daily chart, we cannot be suprised by this up day. This indecision is quite normal, however selling should resume if only to the Fib PR1 level. We notice that MTFS does not point towards a return to a bear trend at this point in time. We still believe that in the medium term, the retracement target is 766 or 750 where another bull run should start.
We'll update this scenario in due course.


Note on ER (TF): While 468 is a strong resistance level, selling pressure is not as marked as for ES.

( posted 7 AM UK )