Market Update - Oct 7th '09

ES shot up to Fib PR2 around 1052, which could jeopardize our longer term scenario. We have to admit that chart reading was not as clear over the last few days with conflicting information. This unfortunately happens sometimes.
Obviously the report frequency being daily, one can expect the information to be more related to the shorter time frames, but we also try to provide a longer term view.
Our outlook is still of an upward bias on the hourly chart, of a congestion on the daily chart and of a retracement over the longer term...
We'll check 1052 on ES and 600 on TF as short term resistance levels.

EURUSD: we'll keep an eye on 1.464
€/$ should lose a bit of ground, but behaviour on that key level will determine where it will go next.
We notice that despite being very overbought selling pressure on the weekly chart has reduced, hence the retracement we've announced for a while may be overall even more limited than we anticipated.

( posted 5 AM UK )