Market update - May 22nd '09

Selling took prices almost to the 875 level to bounce late in the day. That level is definitely going to be a test for our target in the mid 820s.

We see ES having difficulties passing the 892/894 levels and some range bound trading is quite possible. Only if 875 is broken, will we then consider the retracement starting. In the meantime, it is recommended to rather stick to lower time frames.

Having said that, we cannot discard 892 (acting as a pivot) breaking to then see movements in the higher part of the price segment i.e. 892 to 906. For the time being, we favour the lower trading range i.e. below 892. Again, a lower time frame is required to pick up movement details.

Same for TF, except price segments are wider percentage-wise.
Check 485 to 489 for pivot.

( posted 7:15 AM UK )