Market Update - Jun 17th '09

Markets behaved as expected yesterday with ES hitting target on 906 and TF on 500. A momentary bounce is possible in the short term and one cannot forget that this is only healthy profit-taking on the daily chart.
These levels are strong support levels on both time frames so we probably just have to exhaust the current selling pressure. One cannot discard the possibility of this level being broken and lose another 5% or so (quite a likely scenario actually).
Again no reason to believe that this is anything more than a normal pause to gather strength and attack the 1000 level.

TF follows the exact same route now (short term bounce), and will probably break 500 to fall back into the lower price segment (468 to 500) to then aim at the 600 levels. Could take a while though...

( posted 7:30 AM UK )