Wednesday, March 11, 2009

Market update - Mar 11th '09

A good day yesterday... the bounce was anticipated in last reports and once 687 was broken on ES, we realized that ES would then evolve in the price segment above. Such price behaviour has also been discussed in previous reports.
ES is now at the top of the new range (high 710s) and while it is likely to peak here (it is also a 50% Fib retracement level), it could reach 735 (Fib PR2) and eventually 750.
That would be the rosy scenario without looking at longer term time frames. The truth is while the daily chart looks better (MTFS crossover + Entropy bottoming), it is likely to be quite bumpy and 687 could (and probably will) be tested again at some point.

The situation on ER is similar. We'll just notice that ER reached Fib PR1 (~370) and 375 is now in sight. It would be safe to trade shorter time frames until recovery is confirmed. Can take a while though...

( posted 4:40 AM UK )