Market Report for April 27th 2011

by bv on April 27, 2011

Daily morning market report on futures and forex: ES, TF, EURUSD and US (T-Bond Fut.)


Yesterday’s report was admittedly a little too conservative.


- ES broke former (2H-) range upper boundary (1336) to jump to the strong 1343 resistance after the long weekend. Despite significant residual bullishness, this new level is subject to some retracement potential on (2H-) down to a 1342 resilience, and maybe to a lower Fib: 1339, 1336. This should have no effect on longer time frames which should still push to same resistance again. (D+/W) may even try to congest higher, i.e. closer to 1365-1375.


- TF broke 843 a lot more decisively to almost reach previous highs. Like ES, this sudden spurt of energy released after the weekend break unsettles market dynamics as we could have anticipated. Kase charts are however as usual largely insensitive to such abnormal behaviour.

TF reversed on previous highs a couple of points ahead of a strong (2H-) resistance around 859 to currently sit on 849 Fib.

TF may need to comfort buyers with a confirmation of the new stronger 843-844 support area to attempt a new climb to highs then possibly to 867-875 (D+/W).


- EURUSD broke 464-465 overnight to jump to the following 471 resistance. It is surprisingly resilient although a test of former resistance for support would make a lot of sense.

Longer (4H+) time frames have not adjusted yet to this breakout still perceived as a momentary penetration. We will watch behaviour of the Euro near new support on Kase charts (check on Twitter).


- US: the breakout suggested yesterday occurred, to possibly aim for 123 now. (2H-) look bullish enough, yet no major change on our (D/W) bullish congestion outlook, at least to the 123 test level where US should swing back.


( Posted 7:20 AM UK )

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