Tuesday, April 28, 2009

Market update - Apr 28th '09

ES stalled on ... MM Stall level (867.25). Quite prdeictable of course. ES then spent the day drifting to the 850 price level which is the 1st Fib target.

We know that while quite resilient, gravity should prevail so ES should test prices near MM Pivot and the next Fib target i.e. around 840 to 845.

Buyers will then have to be 'exhausted' on the 830-835 area to possibly permit a clearer picture. I however believe there will be barriers near 820 and 812, which if/when broken will open the way to our Fib target (797 then 766).

Same picture on ER (TF). In the short term, we need to see 460 broken. One might first see 468 being passed then tested as a resistance level. ER is just as resilient but maybe just need a bit of a shove to retrace more clearly.

Note however that reversal potential decreases over time, so there is very little chance to see more than a retracement for a Fib target around 410 to 414.

( posted 6:40 AM UK )