Wednesday, December 09, 2009

Market Update - Dec 9th '09

ES broke on the down side as we suspected yesterday, to hit and penetrate the 1093 level. The bounce on 1088 now needs to test that same level, then possibly 1100.
The longer term retracement seems engaged now, however prices must first break 1088 more decisively to change price segment to [1078-1093]. Since the daily chart is probably too confusing for most to swing-trade, it is easier shorter time frames, maybe down to 15mins or lower.

TF didn't hit 610 but stalled just above 605, which was more visible on shorter time frames as well. We still have very conflicting patterns across time frames at the moment, so we'll just focus on the short term trend which is down to the low to mid 590s and overall range bound.

EURUSD did more than just drift... 1.482 indeed broke, opening the way to substantial selling. 1.472 is bounce territory (stall level) but 1.465 (or just above) is our target now. That level is however a lot stronger than 1.482 used to be.

( posted 7 AM UK )