ES found support in the 1038-1041 range as reported on Friday to bounce within the same (4H) range or just about. Buyers indeed decided to have a go at the upper boundary (1062) late in the day. It isn’t clear whether such optimism will carry through to higher (4H) Fibs, but this is a likely eventuality, at least to the low 1070s. Having said that, we are still clearly in a bearish congestion environment on (4H+/D/W) time frames, hence ES should try and test lows again.
TF also reached a low on 594 i.e. very close to strong (4H-) support on 592 where it bounced strongly to the 617 target given on Twitter on Friday afternoon. Like ES TF is likely to move higher to the next strong resistance in the low to mid 620s area, where the (D/W) bearish congestion environment should take over to drag prices down again. We will however first check TF’s behaviour on target.
EURUSD stayed above 1.27 almost all day, confirming the support level, thus allowing a climb of the Euro, although not quite reaching the 1.278 target area yet. Again, we are typically in a retracement configuration which should like our indices end up in a continuation of the same bearish congestion (4H range). We will here as well first assess EURUSD’s behaviour on target as the Euro could even (unconvincigly) creep a little higher without affecting our longer term (D/W) scenario.
( Posted Saturday AM UK )
