Market Update - Dec 10th '09

ES tested 1085 on the down side, then back to the 1093 pivotlevel yesterday. Overall it behaved as expected and should drift lower again today. The retracement scenario requires ES to stay consistently below pivot level (1093), and probably more or less like yesterday until 1086 then 1078. The daily time frame should then join the party.

TF looks a little more resilient at first while being channel bound (30 and 60mins). 588 is a bounce level (Fib) for now which should keep prices in the same range. Shorter term shows a slight upper bias while longer term point towards some erosion, and despite these conflicting forces, the weekly chart still only shows a modest Fib support level (23.6%) hit a month ago which is not significant enough. In the short term, we will watch that prices remain below the 594 pivot level, to then possibly aim again at 588 (Fib test level) then 580.

EURUSD should keep on drifting lower. There are support levels like 1.468 (stall), then probably 1.464 which is pretty strong. There isn't that much selling pressure though after the big drop seen these last few days. We would need another breakout situation to clean the books and speed up selling again.

( posted 6:35 AM UK )