Market Update - Jul 24th '09

We finally see a possible pause in this apparently relentless rise to 1000 level. We have a Fib target around 978 and a stall level at 984 which together explain the limited profit taking we've seen late in the day.
One should not indeed any reversal nor even any significant retracement today. Hesitation has so far favoured buyers and in absence of any major news, one could see some residual momentum and therefore see ES stay pretty high.
MTFS and Entropy are starting to show some weakness though, so it would be worth monitoring the market behaviour in realtime.

ER has caught up with ES to an extent, and show still a little more resilience. Here too, while profit taking seems a logical step now, we have to remain careful and try not to read too much into our charts. Reversal should occur pretty soon, but it probably won't be possible to pick it up on this daily report. Slower time frames will be necessary. Note however that it may happen today, monday, who knows...

More details on the weekly report tomorrow.

( posted 7:50 AM UK )