Weekly Report - Aug 10th to 14th '09

ES reached the 2nd Fib target level on Friday, still within the resistance area given on previous reports (1000-1020).

We still do not see the buying pressuring abating much, hence while the 1000 level is still quite valid, we may see the level being tested as support. If 1000 doesn't hold, then profit taking could pick up some momentum, even though one cannot see it at present.

TF gives us a potential higher target in the mid 590s and the previous 562 resistance level has now been clearly broken (new res level is 578). One could therefore extrapolate a strong resistance level in the area (just another jump to the next 16-point price segment).

We do notice a mix of more hesitation inducing higher volatility in this underlying bullish trend.

Some traders may want to secure profit by moving their stop just below Thursday's lows (i.e. around 990).


NB: There won't be daily updates this week.