Market update - Feb 24th '09

As mentioned yesterday when the Euro was somewhat higher, the real key level is 1.2695 indeed, in the short term anyway. EURUSD may fall to target but we have serious contenders waiting to jump around last week's lows.

As far as ER and ES are concerned, no surprise either, except maybe that support level have been penetrated a little firmer than anticipated, shrugging off lower time frames to go and test targets on longer time frames.

ER is now aiming at stall level around 390 and possibly even a Fib target on 383. A strong bounce is to expect at some point though (like end November '08).

ES is following the same dynamics except it is closer or on target already, so will it follow and take the entire market to 728, or will it resist here and contribute to the bounce.

There is however still a LOT of negative energy to dissipate, and we don't quite see the end of it right now. Shall we see a lot of fighting at this key level ? Well, if not, the picture could be quite ugly with a 100-point fall ...

( posted 5 AM UK )