ES reached high 1080s as mentioned yesterday where it should now stall yet remain high. (4H) now shows a target in the 1093-1095 area. Intraday and daily market patterns have somewhat disconnected since ES broke out above 1062 but the (D/W) outlook has surprisingly little changed. The bearish Daily pattern did not complete when the sudden surge occurred on Sep 1st. We would be inclined to think return to congestion is our preferred scenario unless of course the next salient Fib target is passed.
TF also reached how our 628 target (later pushed to low 630s on Twitter). We here obviously have a similar situation with (4H-) charts now definitely bullish (and overbought). The (4H) chart is clearly pointing higher even if a test of the 625 level as support is possible if not likely. However, with due consideration this may confuse readers, we are still in a “false recovery” congestive scenario on (D/W) charts, and this outlook should not change until/unless TF passes the 639 resistance level.
Dull day for EURUSD yesterday, hovering around the 1.282 test level all day. Having said that, even if such resilience has not yet given wings to the Euro, a definite more bullish tone is visible on (4H-) charts. The Euro should therefore aim higher (1.287 or even slightly higher on 4H+/D charts). We can’t on the other hand discard minor retracements (1H-) along the way.
T-Bond (US): stalling mentioned in last reports has understandably caused some retracement (intraday charts). Resilience to be expected on D/W charts even if 132, or even 131 5/16 could be tested first.
( Posted 7 AM UK )
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