Market update - Mar 17th '09

ER stopped its rise almost spot on stall level just short on 400 to start retracing a bit. as mentioned before while resistance is just above 400, it is more important to see ER (aka TF) stay above 375. We realize that some profit taking will be necessary (early crossover on the daily chart and weekly chart still looking ugly).
We'll therefore watch for Fib retracement levels on 60 mins chart and lower. However while energy level is dropping, we do not anticipate more than a modest retracement, so 375 would be the ideal target. Should prices stay above 385 (minor fib level, but a level still), ER may find the necessary boost to get to the low 400s target.

ES seems to have bounced on 750, so could aim a little higher. We do have possible targets in the high 760s (hit already) and then high 790s. We know nevertheless that we have the same early crossover configuration here so a retracement is due. Bars are still blue, so we'll go with the flow until momentum is exhausted.

( posted 7:20 AM UK )