Market Update - Dec 15th '09

As mentioned on sunday, we had an easy long yesterday, with ES attracted like a magnet to the 1109 level, even overshooting it a bit. The level may a little hard to break, but there is still a slight upper bias and it would just make sense to make bulls happy and hit the target level once for all. Again a breakout situation can stop the anticipated erosion and unleash enough energy to take prices to the next range (1109-1125). Shorter time frames are recommended (15 or 30 mins), just in case the current bias fades quicker than expected.

If anything, TF is easier to read today. It is largely overbought, but is aiming at 609 now, even if it isn't clear whether it can go much higher. Here again, there is no indication of enough energy at this point in time to take it to the next price segment (610-625). We'll have to see how large banks tease with the 609-610 level first.

Finally, EURUSD.
As mentioned on the weekly report, bears are keeping it down, but it is important it holds the 1.464 area, otherwise we could have another sudden drop to just below 1.45. Selling pressure is certainly there still, so we'll watch that level carefully. Note that it can be penetrated down to recent lows and still lash back as the bounce potential is strong here. 1.476 would then be a rock solid resistance level.

( posted 7:10 AM UK )

Market Update - Dec 15th '09

As mentioned on sunday, we had an easy long yesterday, with ES attracted like a magnet to the 1109 level, even overshooting it a bit. The level may a little hard to break, but there is still a slight upper bias and it would just make sense to make bulls happy and hit the target level once for all. Again a breakout situation can stop the anticipated erosion and unleash enough energy to take prices to the next range (1109-1125). Shorter time frames are recommended (15 or 30 mins), just in case the current bias fades quicker than expected.

If anything, TF is easier to read today. It is largely overbought, but is aiming at 609 now, even if it isn't clear whether it can go much higher. Here again, there is no indication of enough energy at this point in time to take it to the next price segment (610-625). We'll have to see how large banks tease with the 609-610 level first.

Finally, EURUSD.
As mentioned on the weekly report, bears are keeping it down, but it is important it holds the 1.464 area, other we could have another sudden drop to just below 1.45. Selling pressure is certainly there still, so we'll watch that level carefully. Note that it can be penetrated down to recent lows and still lash back as the bounce potential is strong here. 1.476 would then be a rock solid resistance level.

( posted 7:10 aM UK )