Weekly Report - Sep 21st to Sep 25th '09

While hesistant on 1062 which is a strong resistance on the 60mins chart, ES could push higher even to 1125 over the next couple of weeks. While residual momentum is still there, a retracement is clearly in the cards on the weekly chart but it is impossible to figure out when sellers will actually pull the trigger.
We'll therefore watch the behaviour on Monday on this 1062 level. Should sellers have a go, ES could shed 1.5% to 1050 but it should remain limited at first.

We however notice that TF is more prone to retrace and could take ES down with it. It currently suffers from the same short term hesitation with the same upward bias and the same need to retrace on the weekly chart.

EURUSD: could be range bound in the short term, but still bullish overall. We indeed saw 1.464 acting as a support now on the weekly chart. That level remains key to the continuation of the current rise. A moderate retracement is also necessary here even if it could take a while to exhaust the current buying pressure.

( Posted Sunday 7AM UK )