Market update - May 5th '09

I have to admit that i anticipated a retracement on 875 which never happened. I also mentioned the possibility of a breakout yesterday and we got it indeed with prices jumping right up to the top of the next segment or band. ES indeed reached 905 i.e. 30 points above the previous resistance, and only 1 point to the new strong resistance level.
The daily chart looks bullish still so any forthcoming retracement will be limited, maybe to test 875 as a support level now.
It looks like we're on our way to 1000.

The situation is similar on ER (now TF), without however any price jump. 500 still holds even if penetrated, which is understandable as the level is stronger on all time frames.
Like ES, we may see 500 being passed then tested as support.

( posted 6:20 AM UK )