Wednesday, April 29, 2009

Market update - Apr 28th '09

ES remains quite resilient at these levels, even though a "air hole" could perturb this configuration anytime. On the 60mins chart, ES bounced on a first Fib target on 850 which is usually fairly weak. Again, we would favour a drifting or profit-taking scenario but in order to avoid putting the ox before the cart (common mistake i also do) one should wait for the daily chart to show a least a red bar (the weekly chart is also indicating a peak).
Should selling start picking up speed, we see the next target in the 840 to 843 area.

The situation on ER (TF) is similar, and maybe clearer too. We are in a trading range made of price segments which are more or less 7 or 8 points wide. ER needs to break 468 (range mid point) then 461 etc.
The daily chart is also quite resilient, to the point that we can't discard a scenario whereby ER would manage to pass this stall level to give a go at the almighty 500 level. Here again, the "air hole" episode is quite probable so we are waiting for a red bar, and a breaking of the trading range on the 60mins chart first.

( poste 6:50 AM UK )