Market Update - Dec 18th '09

ES broke out on the downside as expected, so an easy day overall as ES behaved pretty well to just land on the next support level, respecting the usual price quantum.
ES is now bouncing to probably test 1102 as resistance now. This remains a confusion area on longer time frame still waiting for the "big drop", so we'll stick to short time frames for now.

TF also unsurprisingly stalled on 610 and still remains more bullish, so the last push to 625 in the next week is still possible. Again, we'll have to review the pullback scenario when we get closer to that decision point.

EURUSD is now ready for a bounce if it passes 1.4404 today. However no change in dynamics in sight, so a possible upward retracement would stall on 1.462 to 1.1464 which is a very strong resistance area. The 1st 1.4404 level will be difficult enough to break already. We will therefore check for MM/Fib levels on the 30 and 60mins charts.

( posted 6:40 AM UK )