Weekly Report - Dec 21st to Dec 26th '09

ES seems to bounce on 1094 for the time being. It could otherwise just hover fairly directionless in the price range below this coming week, i.e. between 1078 and 1093. The 1102 to 1104 area is a relatively strong resistance in the short term. We unfortunately have no indication of a forthcoming end to the confusion are for now, even if the substantial retracement anticipated on the weekly chart is still there for early January.

Again, if we look at TF for correlation clues, TF has been testing 610 a number of times now and is still bullish in the short term. As mentioned in previous reports, we can discard both indices hitting their major resistance levels first (625 for TF and 1125 for ES). TF also has a Fib target on 618. In any case, buying pressure should be exhausted soon, even though volatilty may blur charts a little on account of slower trading. End of year 'window dressing' is also a common fund activity which can cause some apparently irrational market moves.

EURUSD is in bounce territory now around 1.43, which could take it to the 16.4% (1.447) or maybe even the 31.8% (1.46) levels. The longer term trend is definitely down now, so we might see 1.408 by the end of the week. Note that we even have a combined Fib level on 1.375 within the next 6 weeks.

Unfortunately, i won't be connected most of this week so there will be no daily market update.

Next report scheduled for next Sunday.

Wishing you all the best for the festive season.