Market update - May 21st '09

We've had TF showing clearer patterns for quite a while, with the almighty 500 level acting as a "strange attractor" and now triggering some selling. Our target on the 60mins chart is 480, but again, the selling pressure is quite limited on the daily chart so it is difficult to say whether we'll reach the low 440s Fib target there. A period of congestion is more likely.

Let's go back to flagship ES now.
It is started a pretty steady descent with an immediate target on 894 then 890 (tick charts). 892 is actually also a Fib target, so we have a few easy points to pocket there. However we have to realize that while we do have a Fib target nicely laid out for us in the mid 820s, we have no indication of substantial selling pressure to take us there yet.

( posted 7:15 AM UK )


Note: Next Tuesday's report (May 26th) will be posted late.