Market Update - Dec 3rd '09

I have mentioned on several occasions that this report is sometimes just not adjusted to the right market frequencies. In this case, the fog cleared up overnight to see ES resuming its rise, extracting itself from stall level and now aiming at 1125. This level being so much anticipated, it is not rare to see a reversal on stall level.
Renewed bullishness now guarantees a fairly easy target.
We shall review the longer term scenario this weekend, with with the channel upper line meeting resistance level.

TF is as usual in a similar situation although it has already hit it target zone (MM/Fib Exp). Short term energy is there to possibly take it to 620.

625 on TF is the alter ego of 1125 for ES, but this would mean more ground to cover for the wider index. This should translate into quite a bit of fighting while arbitragers try and balance their exposures on pseudo-equilibrium points.

EURUSD: correlation seems to be coming back, and €/$ is now aiming at 1.5135
Current level (1.512) is a Fib target on the 30mins chart so we may get there with waves.

In conclusion, volatility makes it often difficult to grasp a picture for the whole day (unless i maybe use a 120mins chart). I would therefore welcome users of the toolset to contribute to this blog.

( posted 8 AM UK )