Friday, October 02, 2009

Market Update - Oct 2nd '09

We finally got our retracement ! Last report was posted before we could confirm the acceleration but the direction was right nonetheless. Hedge funds probably had a go at indices on the 1st day of the month (will it be a dreadful October like many times in the past...)

ES is now on its target (1022) where a temporary bounce is possible. We aim lower though around 1007 or even 1000 but maybe not today. We are however not going to turn morose and start drawing Fib retracement levels on the weekly chart.

TF has been if not leading at least giving us clearer pictures lately and we notice the strong support level on 578 (stall level 582). We'll wait to see whether the level holds today, or whether like ES, we aim lower. The pressure is on but selling could well abate temporarily.

EURUSD: we would like to see a bounce on strong support level on 1.4526 but the daily chart is bearish still. Should the level break, EURUSD could shed another full cent in less than a week.

( posted 7:40 aM UK )