Thursday, April 30, 2009

Market update - Apr 30th '09

Again, it is clear that one must always guard against reading between the bars (pardon the pun). We knew there was a possibility of reaching strong resistance level first, which often acts as a (strange) attractor.

ES has therefore clearly hit 875 (at least this is done now), and... we might have to wait a little longer to finally exhaust buyers enthusiasm. ES should indeed hover in this price area for a while, unless market participants decide to massively take profits ahead of the long weekend (unlikely though).

Once selling has started, we'll follow Fib/MM for targets (unchanged from previous reports).

ER (aka TF) is slightly out of sync as it is still running to catch up with its own 500 target. The pattern formation is however exactly the same.

( posted 7:10 AM UK )