Market Update - Dec 8th '09

When it comes to chart reading, some days are easier than others, and it is often pointless trying to pick a direction. ES is going nowhere at the moment, range bound and slowing down, in hangover mode after Friday's volatility spike and waiting for triple witching next week. We can also expect end of year portfolio adjustments which can always create some surprise if volumes turn lighter.

There is little to say about ES except that the range will breakout eventually, probably on the down side even if the exact timing of the anticipated retracement on higher time frames is difficult to pinpoint on our 30 and 60mins charts.

TF is still trying to creep higher and this broader based index seems less correlated to ES, causing the current confusion. 610 would be our target here (MM/Fib).

EURUSD should keep on drifting a bit but we do recognize that 1.482 is a strong support for now. Yesterday's lows could be tested again, but like with indices, there is no precise driving force at this point.

( posted 7:15 AM UK )