Mid-day update

What a beautiful slide...
Selling pressure is still strong but target area is now in sight.

Market Update - Nov 26th '09

Same confusion for longer term players, and same fun for intraday traders. The trading range is known, so is our preferred time frame (30mins to 60mins). Levels are nicely demarcated with MM and Fib levels... so much so that the overall chart reading technique is just a little "add-on" to public domain stuff.

So, ES bumped onto the strong resistance level to retrace abruptly. Test level will be the range lows now. Buyers may give up the fight and let the big slide begin. We'll first check 1095 (stall) and 1093 (strong support) for a possible breakout. Note that the daily chart is not indicating anything particular, hence despite this volatility spike, this is just the same congestion on that time frame.

TF is also aiming at range lows around 580. We've been repeating that TF seems to be leading and while there is still a bit of fighting around the current range, a breakout to 560 (and possibly lower) is in the cards.

EURUSD did hit our target on 1.513 to trigger some normal profit taking, probably to 1.5045 now. The low 1.50 have to be tested for support to validate the new range after yesterday's breakout. We have no indication of a major pullback just yet, so intraday time frames are again recommented even if not quite adequate for this daily report...

( posted very late 8:45 AM UK )