Despite a 10 point level penetration, which is insignificant at (D) level, one can assume that ES has so far landed on (D) resilience level (~1180) where it is now trying to bounce. 1187-1190 would be a test area for a potential recovery which looks unlikely. Profit taking can however prolong congestion above resilience level, and (W) while having peaked recently also shows no sign of any abrupt reversal yet. It is for the time recommended to follow a (2H/4H) down channel as well as (4H) Fibs.
TF held above the strong 702 support level (2H-) where it is also engaging on some profit taking. 700 is also resilience level on (D), so this can also indicate extended congestion. TF would need to pass (4H) mid range key price point around 719 to resume bullish congestion or break current support to confirm further down retracement. At the moment, congestion with a slight (2H) upward bias at first is our likely scenario.
EURUSD bouncing as anticipated with key (4H+) resistance in 1.364 – 1367 area. Lower (4H-) time frames are not that bullish, indicating this creeping up profit taking episode may be tedious and short lived before the Euro resumes south again…
T-Bond Fut. (@US): Bearish congestion to mid 126s but selling pressure is abating a bit, so US may settle above recent lows for a while (4H-). (D) is however quite bearish.
( Posted 7:45 AM UK )
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No report before noon UK tomorrow.
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