Market update - Mar 19th '09

If we look for possible exhaustion in this recovery rally, this is maybe not quite the time yet, but we should watch out still.

ES is creeping up and hitting our short term targets day after day to now come close to strong resistance levels. We do see a stall level around 805 with energy levels possibly peaking soon (we've hit 804 now). The pattern certainly seems completed. The daily chart is obviously looking bullish but also shows a strong resistance in current price area (high 790s).
One should not read too much between the lines though. Again, the momentum is still there even if there is NO change in scenario, i.e. ES WILL have to retrace on this "early MTFS crossover".
In the short term, we'll have to watch 782 as a support in case of a pullback.

ER also has a little more room on the up side with a target on 421. Patterns are the same otherwise.

We're coming close to triple witching, so interesting end of the week ahead...

( posted 6 AM UK )