Market Update - Jul 31st '09

The market stopped a little short again with some profit taking on 994. Selling actually started on the TF resistance level (hence always a good reason to watch several correlated instruments). ES a Fib target on 996, and the so much expected 1000 level.

At the bottom of the current trading range, 984 seems to be a strong support level at the moment, so we should see more hesitation today ahead of key target levels, and possibly adjust positions accordingly. It is not possible to anticipate any significant retracement with any accuracy right now.
On the downside, we'll watch for a breakout of the 984 level (next strong support level is in the high 960s). We however do favour continuation of the current trading range ([984-1000] for the time being.

( posted 7:30 AM UK )