ES did not even get to the test levels around 1110 and collapsed early in the day, right down to the our target in the mid 1070s we gave on the weekly report. The 30mins chart provided a good picture of a Fib pattern retracing to the high 1080s, so despite the apparent fall, there is still some order in the market. We now have to check out in the short term today whether prices stay below 1078, or whether the market will now aim at 1062, i.e. push this bearish regime to remain in the [1062-1078] price range. The daily chart is obviously also bearish but has some strong retracement potential (hughely oversold), and the trigger point may come soon. If the weekly channel breals though, massive bloodshed will follow.
Following the same path, TF hit 600 (2nd Fib retracement level) and could now go for the low to mid 590s. Again, this profit taking is nothing but normal, and it is only if the weekly channel breaks that we’ll have to adjust for target in the low 500s.
EURUSD hit support level on the 60mins chart and where some unconvincing bounce may occur. We do keep our 1.375 longer term target in mind for next 2 weeks though.
( Posted 6:45 AM UK )
