Market Update - Oct 21st '09

Sorry about yesterday... Could not find a minute to connect.

ES is finding it difficult on 1094 but it isn't clear yet whether this is the signal for the pullback we've been waiting for. Prices should indeed hover around current levels, and test resistance again. We shouldn't be too far from the peak now so i again recommend moving to lower time frames.

TF has already retraced a bit to 610 where a bounce is likely. Same period of hesitation otherwise, so caution must be equally be exercised at these levels, even if we don't anticipate any strong pullback in the short term.

EURUSD has hit the target we had on MM stall level. We also notice that the retracement potential on the longer term (weekly) is fading, hence only minor profit taking could slightly affect the current bullishness in the couple of weeks or so. Passing stall level and then the strong 1.51 resistance should prove difficult though, so we'll update our scenario as we get close to target.

( posted late 8:25 AM UK )