Yesterday’s report was short but to the point… ES indeed fell to low 1050s and even hit a 1H Fib expansion target on 1044. Today bearish remains obvious but (4H-) would indicate a relative slowing down in selling. This does not mean yesterday’s lows (down to high 1030s possibly) could not be reached, but ES should end up in a bearish congestion trying to claw back to 1050s. No upward retracement in sight on any (4H+/D/W) time frame though.
TF behaved the same way and also hit our 592 target. Here as well bearishness should translate into a “hard landing” i.e. possibly going a little lower still to then bounce a little and congest. This is typical of a fast bear market trying to push on the brakes too close to target. If 593 breaks, the market could indeed go for 578. (D/W) time frames may even point a little lower.
Like other markets, EURUSD is now too close or on target with a lot of selling pressure still present, so it is difficult to back-throttle at this point. We here also anticipate indecision and volatility near current lows, always with a possibility of bears releasing the brakes to go for a lower target.
( Posted 6 AM UK )
Twitter updates in the afternoon UK.
