Market Update - Dec 29th '09

Here is a copy from the ForeTrade Blog report for Dec 29th 2009:

ES has now hit 1125, and it is only now that we can try and estimate opposing forces. Bulls still seem to have the upper hand at the moment but we can see that sellers are right there. One should not anticipate anything major coming until Monday, even though lower volumes can provide volatility and good trading opportunities in short time frames, but while the trading method remains the same, a daily report is not adequate here.

TF is ahead of ES and remains marginally bullish. It is obviously easier when we have a good correlation across our indices between levels and patterns. We'll assume low volumes are the cause for this temporary confusion.

EURUSD tested 1.44 as expected in our weekly report, and could even test higher grounds, at least until a Fib retracement level is hit. We do have conflicting forces across time frames so we'll safely aim at 1.443 then 1.447 if the brakout is confirmed. The more optimistic traders can maybe hope for 1.455 later on, but we'll tighten our stops along the way.

( posted 8 AM UK )