Sunday, October 18, 2009

ES has reached the 092 target we gave last week to retrace to mid-resistance level (high way to pivot level). It is now even more hesitant, and even though higher time frames still point to a new target close to 1125, we have to remain cautious about significance level on the MTFS which is dropping fast, indicating we should pay more attention to a lower intraday time frame. We'll therefore first check whether the [1076-1080] support range holds on Monday morning, as it could trigger selling to the 1060s.

TF is also hesitant, losing a little bit of ground without any selling pressure. Erosion could continue to 610 first, maybe 604 later on. We'll have to update this over the next few days, as a If selling doesn't pick up momentum, a congestion period could last for a while.

EURUSD: Quite resilient, it is testing Fib/MM level around 1.486 to 1.489 for now, and could lose a bit of ground to 1.48. Like for indices, selling pressure is pretty mild still, so we may see some congestion, trading range and even our target being hit still.

That's all for now... We'll try and be a little more definite over the next few days. On account of traveling, Tuesday's report shall however unfortunately be posted late.

( Sunday 11:40 AM UK )