Tuesday, March 24, 2009

Market update - Mar 24th '09

We indeed saw ER find support just below 400 to jump up to close to the strong resistance level. We can see a few salient levels in this area (see daily chart). Having said that, we still believe a cup & handle formation will be necessary at some point.
Today's momentum can be sustained if ER stays above 421.

Reached its target, and yet still shows some residual momentum above 812. ES is ready for a pause but could just as well try and reach the next target on the daily chart (~833). Having said that, we have to be cautious and prepare for some limited retracement.

This bull run in any case takes away from danger zone (the failed recovery scenario), so we can estimate 750 as a new support level and potential stop for those who went long early enough.

( poste 6:45 AM UK )