ES found it difficult to break 1203, but we steadfastly kept our target as we noticed that longer (D+/W) time frames weakened to allow at least for some tilting. ES hit (1H) stall on 1191.50 where a minor bounce is possible. A soft landing on 1187-1190 is our next target where we will assess future direction. ES is very likely to test (D) resilience level at some point, which would then trigger a more sizeable retracement.
TF also took a while to dip lower, and then only back to support area on 719… Even if the (W) chart is now congesting and indicating a inclination to reverse, underlying bullish forces keep on postponing anticipated retracement. At this time, there is room to bounce on (4H) Fib, with a high likelihood to aim lower to the 700 area which is the key (D) resilience area, with a possibility of faster selling on channel breakout though.
EURUSD dipped below 1.367 on account of a spurt of selling energy on lower (2H-) time frames. This as we indicated on Friday does not imply a clear support breakout, but just a “momentary stretch”. The anticipated bounce to Fib (energy release), ended back to key level which remains valid. Lower (2H-) time frames will try and hold above 1.367 and repeat another cycle of hesitation (to 4H Fib?), until it is ready to move lower to the 1.35 area (to be updated by mid week).
T-Bond Fut. (@US): heading lower as mentioned in previous reports. Target in the mid 126s for now (D).
( Posted Sat AM UK ).
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