Tuesday, June 23, 2009

Market Update - Jun 23rd '09

We had anticipated this move on several occasions, even if it is never too easy to pinpoint when the breakout will actually occur. It was therefore a clear case for a stop entry just below support levels or simply follow the last pivot and enter limit or on some pivot confirmation.

ES went almost straight to the target we gave yesterday (2nd Fib expansion level) and should aim at stall level in the low 880s but some soft landing is possible in the short term. The daily chart points lower though, so any bounce on the 60mins chart is likely to be short-lived.
Note that on all time frames, an absolute bottom would be around 840, i.e. we do not revise our longer term scenario described in previous reports to see ES test 968 then 1000 within a month or two.

TF also shows a soft landing area around current lows, so shall we see 500 tested as a resistance again to then aim lower ? Like for ES, a longer term consolidation target is probably in the 460s where buying would resume in concert with ES.

( posted 7 AM UK )