Market Update - Dec 16th '09

ES stumbled on 1110 and is now hovering in the same price range, from 1100 to 1110. MM range has narrowed which will inevitably end up with a breakout situation. At this point in time, we could be inclined to think that 1110 to 1112 will be tested again, possibly triggering buying to the next price range, and hit 1125 finally. Only then can we start considering selling more seriously, but we'll come back to that, knowing it can happen after the festive season.

TF hit our easy 610 target as mentioned yesterday, and needs that extra push just like ES to go aim at 625. 610 will be tested again so we can prepare for a breakout situation (as well as for retracement) when there.

EURUSD behaved as expected, and we'll check for our bounce today as 1.452 is a pretty strong support level in low time frames. We'll check Fib levels on our 60mins chart for resistance. Note the bounce can be fairly strong even if it takes a short while to materialize (daily chart).

( posted late... 9 AM UK )
NB: There will be no daily reports next week