Market update - Feb 11th '09

Oh well, retracement was a little stronger than anticipated. The fall stopped on the 2nd (stronger) Fib expansion level for both ER and ES.

So, what's is in store for today now:

ER: Oversold and in hangover mode, ER should stay in the same price range. Selling pressure should keep it low within the low to mid 440s. Technically as we said in previous reports, we are not 'worried' as long as ER stays above 437.

ES: Same story, just different prices. ES will be of concern if 812 is broken.

Longer term, we're still in a congestion mode with a likely recovery point down the line. According to each and everyone's risk profile, i recommended going for short times frames, take an aggressive long limit order and hang in there, or stay on the sideline for a bit. No change in strategy just yet.


( posted 4 AM UK )