The soft landing mentioned previously turned into a sudden upward retracement (with a sizeable overnight gap) to test key levels broken earlier (906 for ES and 500 for TF).
It iw quite normal to see them being tested as resistance now, so nothing surprising as such.
The 60mins chart is however hesitant (reached a Fib PR2 on 908.5), so we'll have to watch this 906 level very carefully. Would there be no overnight spurt of energy, one would say that this is normal level testing, notmal range trading, and the overall trend toward consolidation would resume shortly. That scenario is still more than valid on the daily chart, but this volatility on shorter time frames is of concern and one cannot discard moving up one price segment again in the next couple of days.
Despite this high volatility, we'll nonetheless stick to our consolidation outlook provided by our daily and weekly charts.
( posted 6:40 AM UK )
Thursday, June 25, 2009
Market Update - Jun 25th '09
