Wednesday, May 27, 2009

Market update - May 27th '09

Sorry for yesterday... one of those days...

Anyway, was i right or wrong ? A bit of both. ES indeed hit lows as expected, but i did not pay enough attention to the bounce potential. ES even passed a significant 906 level and could therefore aim back at range higher in the low to mid 920s.

Having said that, this is only "noise" at daily level, and this trading range is kind of directionless, and could eventually break on the way down, as described in previous reports. Our outlook remains a target in the mid 820s upon breaking on the 866-875 level. On the upside, the target would obviously be the almighty 1000.

If we take cues from TF (aka ER), we'll have to check the 500 level carefully. It should hold and send prices down, but we'll remain carefully of a breakout nonetheless.

( posted late 7:40 AM UK )