Market update - Jan 15th '09

Eh eh... yesterday's quick report at the airport was spot on, wasn't it ?

ES used the former 875 support as a resistance to then trigger substantial selling. EURUSD hovered around same price range as expected, with also a negative bias. However, BCE will announce a much anticipated rate cut today which may slow down current dynamics.

EURUSD: Relatively directionless in short time frames, with some remaining bearishness yet, the 1.318 support level is technically holding. Longer term, while we do also have a lower bias, we have a potential pivot around current lows, so one should remain careful. The 1.324 level is too close to be considered as broken particularly in this volatile environment. If short, stops should be tightened.

ER: Still quite bearish and heading towards [437-441]. We are still in a "failed recovery" mode, which often turns positive later on (e.g. Cup&Handle pattern) so no panic just yet, and buying opportunities will come up soon (Fib retracement levels).

ES: Quite bearish here too and while entropy seems to have bottomed on the 60mins chart, we have to wait for a support to be confirmed either around current stall level (~828). On the daily chart, we do notice also a potential pivot point which will take a couple of days at least to materialize.

We may therefore see turning points soon... Could that be a "Obama effect" ... ?

(posted 8:15AM UK - screenshots available on request)