Monday, May 18, 2009

Weekly Report on ES & TF - May 18th to 22nd '09

ES is retracing in a pretty clean manner with an obvious target around 875. We've had a small bounce on 878 (1st Fib target) on the 60mins chart, but selling pressure is still there. In fact, support could be found a little lower (~867).

On the longer term (daily chart), it seems ES could shed another 50 points for a retracement target around 825. Having said that, we still have no indication of significant selling, and even less of a return to a bearish trend, so we'd better check behaviour on the [866-875] support area.

TF (e-mini Russell 2000) follows a similar path with an immediate target around 468, and seems a little more bearish (reversal indications were also clearer last week). It may reach 444 by the end of the week. Like ES, let's first see what happens on 468 before we confirm that (likely) scenario.

( posted 7:20 AM UK )