Market update - Apr 23rd '09

ES retraced up more or less to Fib PR2 (mid 850s) to then resume south. We certainly have to accept some resilience in the market, hence we have to be cautious around a pivot as always, even if this obviously looks like a classic head & shoulder.
The market should continue drifting rather than falling and we'll check for levels on the way to the high 790s. We have to pass 828 then a strong support in the low 810s.

ER (TF) is certainly significantly more resilient than ES (is it trying to hit 500 first???) so we have to remain cautious still about this profit taking period being possibly short lived. Hesitation at this level is quite normal and we however still believe ER will retrace if only to the 427 to 438 range.

( posted 7:40 AM UK )