Market update - Jun 2nd '09

ES and TF indeed broke out on the upside, ES reaching the top of the trading range in a quantum leap we've discussed before. TF understandably "heavier", went the same way, but was stopped on stall level.

A moderate retracement is possible at this level since 937 is a strong resistance level on both the 60mins and Daily charts. Markets are very bullish and overbought but a retracement from highs is likely to be limited and possibly test the low 920s (previous highs of the trading range which just broke out).

TF paused on stall level but shows little inclination to retrace still. Difficult to say whether it will attempt to reach 530 or gather forces on Fib PR1 just above 500, but there is probably enough momentum left in the market to aim a little higher.

( posted 7:30 AM UK )