Market Update - Sep 10th '09

Scenarios always have to be refined as we go along, this is why i often propose to adjust positions.

Today, we see ES back to the top of its trading range around 1032 with a little more energy lately. If current highs are broken, the probability of it going higher still is strong particularly on intraday tick charts. Having said that, we have another set of resistance just below 1050 (half a price segment, Fib etc) and underlying force coming from longer term indicators remains weak. In other words, we have to remain careful of the market stalling at some point.

TF is also aiming to ~593 with the same possibility of stall.
Again we do have a reassuring longer term upward bias, but a retracement is possible along the way, hence we'll keep watching this market...

EURUSD: on stall level on 1.458 and probably aiming to its strong resistance level around 1.462 to 1.464. As mentioned in previous report, we have noticed a (spurrious) correlation with indices, and while the upward bias is certainly there, EURUSD is definetly entering overbought zone where a retracement would be healthy.

( posted 7:20 AM UK )