Tuesday, March 31, 2009

Market update - Mar 31st '09

Always a chance of some window dressing on quarter end, but assuming most fund managers have done their homework, here is our read on the market:

ER (TF) bounced on 405 which indeed is a significant support level as mentioned yesterday, and selling pressure seems like abating in the short term. Dynamics have however reversed and stronger support is likely to be needed in the 380 area.

ES also bounced on equivalent (actually stronger support) on 781, and should also settle lower by the end of the week. Targets are again 766, 750 then the high 720s.
No change in our longer term scenario: we still assume the bottom is behind us in our trading plan.

( posted 6:50 AM UK )