Monday, June 01, 2009

Weekly Report on ES & TF - Jun 1st to 4th '09

Here is the month of June, a summer break in sight for those who can afford one, and maybe time to relax soon, to take a step back and look at these mad markets again... Does anyone know where markets will be Dec 31st ? No the slightest idea, i'm afraid.

Anyway, not there yet, so let's have a look at what's in store for this coming week:

ES is definitely trying to breakout on the up side, the 60mins chart is quite bullish with a target just above 930 then 937. Breaking the daily highs would certainly open the way to the almighty 1000. Again we have no such evidence on our charts, and while this may look like stubbornly contrarian, the chances of retracement are still substantial.

If we now take cues from TF, this 500 level is certainly crucial and could certainly give is the market direction at least for the next few weeks. It has been penetrated, but is still valid. We can't ignore ignore that we have a Fib target around 541 hence a strong breakout potential here too. The 60mins chart is here also very bullish, and we also have a lid just above 500 containing prices for the time being. ER and ES have now aligned on their respective resistance levels and could congest or breakout in concert.

The GM announcement today may have a bullet effect either way. If we stick with our "go with the flow" method, our scenario for the week will remain: congestion (daily) with a strong upside breakout potential (60mins).

( posted 8:15 AM UK )