Thursday, February 12, 2009

Market update - Feb 12th '09

Markets are still quite hesitant. Not really fun to trade on these long time frames, not really fun to report either. One can obviously sit tight and wait for a while, keeping some crucial support levels in check.

ER: Fall stopped on stall level (~442) ahead the 437 level which could have been of concern. Some recovery late in the day does not guarantee that ER will not try and test lows again. The market certainly is a little messy. Having said that, the weekly chart could sustain a drop to 423 before taking off again. Once we leave this danger zone, we'll look at levels around low to mid 450s as our first target.

ES: Same story, same feeling of an unfinished business on the selling side, so maybe one should get over and done with it, exhaust sellers and start seeing some healthy buying. The only difference maybe with ER is that there is less room and the low to mid 810s are the last line of defense for a anticipated recovery.

So, let's be a little cautious again. Short term (tick charts), we would like to stay above 828, or at least in the low to mide 820s. 836 will be our test level to get out of this messy trading range.

( posted 6:30 AM UK )