Market Report for April 28th 2011

by bv on April 28, 2011

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

Bernanke’s speech yesterday did not contain anything really new yet it blew the lid on markets, sending the Euro through the roof with consequences on correlated instruments.

- ES: As suggested yesterday the market first found support on 1340 to hover all morning (US) around strong 1343 resistance and then broke out on the upside to reach (1H-) stall on its way to 1359 (2H+) and probably a congestion area closer to 1365-1375 (D+/W). Bullishness should slow down on high 1350s before longer time frames carry prices higher again.

- Along the same line, TF found support near 850 to climb to high 850s, where we have a last big hurdle before all time frames agree on strong 867-875 resistance area as per last report. TF should first congest on current highs, test a support level on mid 850s with no significant retracement potential.

- EURUSD: As suggested yesterdaay, the Euro needed to test former 464 resistance for support, then propelled by Bernanke’s speech to shoot off to mid/high 480s. It almost reached new strong resistance on 489 where some profit taking took place. The Euro indeed passed Fib extension on 485 a little too quickly so momentum is slowing down with volatility now. Like for our indices above, bullish congestion is to be expected with a new support near resilience level around 482-483.

- US: Although it ventured above 122 for a while, that strong resistance is still effective. There should not be any substantial retracement here either providing resilience level near mid 121 holds. As mentioned in recent reports, there is no indication of any strong bullishness on (D/W), so while 123 could be attained, US looks range bound and should be monitored for swings in lower (1H/2H) time frames.

( Posted 7:10 AM UK )

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