Market update - May 1st '09

875 has been briefly penetrated yesterday on account of some lag between indices (ER was a little behind ES). Now that ER has finally also hit its resistance level, we can maybe hope we've reached the decision point we've been waiting for.

Unfortunately, the buying pressure has built up on the daily chart so a breakout is now possible even if we still stick to our retracement scenario. Markets could be rangy and choppy.

In the short term, yesterday's low on ES is our key level for retracement, which should be limited initially. Trading should be slow today on account of the public holiday, so we'll review this scenario early next week.

( posted 7:30 AM UK )