Market Update - Dec 30th '09

We have confirmation of the 1125 area as a strong resistance level for ES. However, to the point of being difficult again, we would have preferred seeing more volume on the high bar. Erosion is currently pausing on the 1120 area, but this drifting situation can continue to 1113 or even 1110. Again we don't anticipate anything really exciting this side of the year. Long time frames are nowhere close to turning around still.

We did notice that TF went a little ahead of itself, ignoring the 625 level and following ES on its rise to 1125. TF should also drift but it is only if/when 625 is tested again that we shall gauge whether selling will at last start. Longer time frames (daily/weekly) show no signs of reversing, and retracement potential has even reduced substantially in the last couple of weeks.

EURUSD has landed on Fib retracement level just above 1.43 but remains congested to bearish. Shorter intraday time frames which can't really use in this report point for a limited recovery at first (Fib). We still aim lower over the next few weeks.

( posted 7:30 AM UK )

Note that reports will be posted on the ForeTrade Blog from next week.