ES retraced upward on Monday morning, an easy move we picked up on Twitter. Erosion on higher time frames is however quite visible, and ES is now on 1190 which is the target we also gave yesterday. We still have no indication that (D) resilience area will be broken, so a soft landing on low to mid 1180s would be in order. Our first (2H-) target is near 1187.
TF is confronted with the same willingness to go a little lower with however a closer strong support level (or support area). TF is likely to first aim toward 715 on account of substantial selling pressure on (1H-), possibly triggering further profit taking (~700?). (4H) does however indicate a possible bounce before (D) sinks further, so we’ll need to update our outlook on (2H-) basis.
EURUSD bounced a little, which like ES we picked up yesterday. Selling pressure is now again pushing the Euro down, with a pause on 1.358 ten aiming closer to 1.355. We are still under the impression that (D) is preparing for a significant bounce as (4H+) support around 1.367 may just have stretched, waiting to lash back (D).
T-Bond Fut. (@US): quite bearish with strong support on 125 which will be a test level going forward. Like EURUSD, it could also stretch to 124 10/32.
( Posted 7:45 AM UK )
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