Market update - May 14th '09

I've been saying all along that the retracement would be somewhat limited, but how limited ? Buying pressure was strong enough until to justify prices staying above 875, close to a generally weak Fib level (~866). Now it seems obvious that 875 will be hit (Fib target was 878 on the 60mins chart), and while such level certainly looks like a reasonable landing zone on the 60mins chart, selling pressure has picked up some momentum on the daily chart. So, one might have a bit of fighting in the current price area, to eventually drop another price segment (still about 31 points wide) maybe tomorrow, or some time next week.

You will notice that ER (TF) gave us the actual retracement signal better than ES itself. It is therefore recommended once again to follow the behaviour or mood of both indices (€/$ is also interesting). TF also indicates a "landing zone" around 468, and could also go lower after testing that support for a while.

( posted 7:10 AM UK )