Wednesday, March 25, 2009

Market update - Mar 25th '09

ER (TF) took a breather inches away from resistance level at ~437 to now retrace in the same high volatility environment.
It is now aiming for around 405 (Fib PR1) or the following one right Friday's lows. As said in previous reports, we prepared for this retracement, and are watching out for a bull pattern formation on the daily chart.

ES follows a similar path, and was actually ahead of ER, this explaining why it didn't quite reach its target. ES's rise has been stopped on strong resistance level around 812 to only retrace slightly. It should now hit a significant support level just below 800, yet, we have not the faintest indication of any substantial selling pressure, even if we can already preventively look at another strong support level in the low 780s.

We believe buyers are slowly coming back to the markets, with due consideration that it may still take a few weeks to dissipate the accumulated 'bearish' energy.

( posted 6:30 AM UK )