Wednesday, July 22, 2009

Market Update - Jul 23rd '09

Difficult to find something new and interesting about yesterday's trading... The market has been hesitant on key target without engaging in any sort of retracement. The daily chart is still quite bullish, only marginally dissipating energy accumulated over the last two weeks. ES should therefore stay quite high in the 940s, and only then shall we maybe see Entropy peaking. Entropy level is high in reversal territory but it would take at least a few days to evacuate the current bullishness.

TF, just like ES, is hovering around range highs and could go both ways from here. We'll remain careful around this key levels, taking into consideration that chances of retracement are very limited.

( posted Wed 11 PM UK )

Market Update - Jul 22nd '09

We've seen ES hitting 953 twice yesterday. Will it now breakout higher ? It seems quite likely indeed as a number of market participants have their eyes on 1000 already.
Having said that, we have to remain cautious on this level still.

TF also hit its target on 530 and is also quit bullish still.

We cannot discard some profit taking today without revising our market outlook. We indeed have to keep in mind that a summerly trading range is also quite possible. Behaviour on this key level (weekly trading range highs) will have to be monitored closely.

A special note on EURUSD: aggressive traders may want to go short already, but that's probably way too early at these time frames. Just watch out for a pivot point for the time being, keeping in mind that current target may just as well be broken to reach Dec '08 highs again...
(Both € and US$ economic blocks run such massive amounts of debt...)

( posted 7:40 AM UK )