Thursday, July 16, 2009

Market Update - Jul 16th '09

Merkets behaved as planned yesterday with ES reaching 930 (target with high 920s...) only to retrace on stall level. Obviously as mentioned in the past, volatility as a time compression agent, hence we did not expect the target to be hit so quickly.

Prices should keep on hovering around current levels, possibly reaching the top resistance level since buying pressure is still there on the daily chart. The 60mins chart though is however announcing a pause without any substantial retracement for now. EntBin is quite high though so we'll watch the MTFS behaviour closely, particularly when the green line stops pushing. This would trigger a return to the 906 level.

Same situation for TF which is massively overbought, (MTFS is stuck on its ceiling values). It could also return to 500 later on following ES leadership. At this time of the year, trading volumes are lighter and quarterly results of blue chips and other market leaders can rapidly move major indices.

( posted 5:50 AM UK )