Market Update - Nov 19th '09

ES once again behaved as expected and stayed range bound between 1101 and 1110. In such a situation, a shorter time is always recommended to pick reversal points, the context being provided by the weekly chart. The residual bullishness there is still suprisingly resilient. Again, it is difficult to predict whether ES will hit 1125 before the substantial retracement we've announced for quite some time, but this is in any case a good breakout environment where we can place stop orders outside our 60mins chart's range.
If we take cues from TF, the upside shows good potential after bouncing on MM/Fib levels on 594. Should that scenario materialize, we should see 610 to 612 being hit over the next few days. So, we'll have to be a little bit more patient for our reversal short...
EURUSD follows the same clear patterns. After hitting a high on 1.4990 it retraced to first Fib target and should head further down. This remains a relatively messy situation, congested at daily level, and not quite ready for profit taking. Shorter time frames (30mins) are easier to read with the same support level on 1.4891 for now. A second Fib level is around 1.486 but we again can't guarantee EURUSD is ready to retrace to the 1.46 levels.

( posted 4:45 AM UK )