Tuesday, November 11, 2008

Oh well, just another day...

Will this ever end... ? Have buyers decided to enter into hibernation already ? No, one should not dispair and a trading range is a good way to slowly dissipate sellers'pressure. Obviously, there is still some 20% risk of a fall to the 700s on ES, but a support should be found near current lows.

Let's have a look at our charts:

EURUSD: 1.2695 is a good support with a limited bounce potential. The trading range is now reduced to [ 1.27 : 1.29 ] with a lower bias.

ER: We have 500 slightly penetrated, but that's not a problem since we have multiple support levels on 500, 496 and even 482 so the market will probably settle on one. While sellers'pressure is there, there is no indication of one of those support levels breaking.
No bounce either...

ES: Same story, but downward pressure is a little stronger. Last week's lows 900-905 could be tested again or even hit a target on 890-890. No major fall expected though.