Who's now surprised about volatility? The expected bounce on 875 started on 876.75 (certainly not an exact science and even less so on long time frames), to jump right up to the top of the price segment, almost exactly equal to Fib PR2.
Prices should stay in this high part of the range at least in the short term, but again, while we don't anticipate heavy selling, ES should stay in the same price range for now (i.e. below 910).
We may have some congestion or drifting, but it will take some time to reach the 1st Fib retracement target (866), to then possibly validate our scenario for a target in the high 820s. We'll update this scenario as the week goes along. Again, not much of a selling pressure on the daily chart.
TF again follows a very similar pattern and could lead ES on its profit taking path.
( posted 6:40 AM UK )
Tuesday, May 19, 2009
Market update - May 19th '09
