Market update - Apr 8th '09

ES reached our target on 812, yet at the same time, the 60mins MTFS pattern turned bearish, hence we're not quite surprised to now see a continuation of that much anticipated retracement.

Difficult to say how far it will go as ES is quite oversold (MTFS) and this generally leads to the former support level to be tested as a resistance.
A bounce to the low 810s is therefore anticipated.

This may be surprising but there is no indication of any return to a bear trend even if the current retracement could eventually pull prices back down to the 750s level. We'll confirm this later on.

ER also gives us that same indication of a potential scenario of a return to the pivot level around 437 (way too early to confirm though). On the daily chart, retracement to the low to mid 410s seems quite clear. ER could actually retrace lower to the 380s.

Again, no need to depress... it's only a healthy retracement cycle.

( posted 6:30 AM UK )

NOTE: Friday 10th report will be posted late, just before the opening bell.