Market Update - Jul 17th '09

How are we going to end this bullish week ? ES reached the strong resistance level in the high 930s and is still pulled higher on the daily chart. The resistance is however quite strong, and could hold this time around. Tick charts even seem to indicate a potential reversal if 930 breaks on the down side. Prices should remain quite high, i.e. hovering around the 930s unless volatility is exacerbated by lower volumes on a typical summerly Friday afternoon.

TF is slightly behind ES (reached stall level on 523 while ES already hit its strong resistance level at 937.5). It follows the same dynamics and the same resilience, so the overall possibility of a significant reversal is rather meek.

( posted 7:30 AM UK )