Thursday, February 19, 2009

Market update - Feb 19th '09

Needless to say i was about spot on yesterday.
Selling is not over yet, even if it should abate soon.

ES is going to its [766-770] target while Entropy is now slowing. Only a volatility spike could take prices to target as we are already on stall level (781) at daily level. We have to see how the situation develops over the next few days to assess if ES will fall to 750 or lower. In the short term, behaviour around key 781 will be watched carefully.

ER: while being just as oversold, ER is going to stall level at 414 and may well reach support level on 406. Selling pressure is still quite strong, but one cannot discard a possible bounce or even a short-squeeze on forthcoming levels.

( posted 3 AM UK )