ES fell to low/mod 1060s as suggested in the previous report where it bounced moderately in comparison to the 50 point fall last week. (4H) time frame is now in soft landing mode i.e. looking to confirm a support level above current lows, with no bounce in sight. Selling pressure is still present while moderate, with some residual upward bias on the congested weekly chart.
TF bounced strongly on low 600s, which is a stall level we admittedly overlooked a little. This is also due to the report outlook which we will gradually bring back to hourly/four-fourly/daily as before the summer break. Normal schedules with Twitter updates will resume next week, when volumes should start picking up again. Back to TF: Like ES we are in soft landing mode with a moderate retracement potential. It could indeed creep back to 625 now tested as resistance to then lose further ground. Selling pressure should indeed weigh on prices and make TF congest around current lows (and possibly hit 594) by the end of the week.
EURUSD bounced a little higher than our 1.2695 target, yet with little potential in the short term. Selling pressure is indeed strong on D/W time frames which need to test a strong support level likely to be in the mid 1.26s (as per previous report). In the next day or two, congestion above current lows should however prevail.
( Posted 7:45 AM UK )
NB: a few Twitter updates today based on 4H chart
