Both our indices reversed over the weekend so we corrected our targets on Twitter quite early yesterday morning. ES fell straight all day to now reach major support level and is very close to testing lows as mentioned in last report. The configuration is bearish on (4H-) but there is still a minor chance of seeing the (D/W) patterns end up somewhere above 1032 (bearish congestion. 1000 starts looking as a more likely target (D/W).
TF is obviously in the same mood. We twitted mid afternoon UK that the fall could pause around 608 but it intead kept on losing ground but although still bearish this morning, we will go for a safe target above August lows (592-595). It will at best congest there (same D/W bearish congestion environment), or test a lower support in the 562-575 area. This scenario will be reviewed over the next few days.
EURUSD (our favourite instrument) behaved exactly as expected. It fell to find temporary support on 1.27 first, then reached the bottom of our target range (1.264). There are now indications of congestion on this level, but bears’ appetite is still visible so Aug 24th lows coult be hit again (4H+). Again reported many times, the Euro will be looking at testing a low on the weekly chart. Possible candidate levels at this point are: current prices, 1.244 and 1.221
Additional note on the T-Bond (Symbol: US) : While still bullish, stops could be tightened as target area has been reached (4H+/D)
( Posted 7:10 AM UK )
