As we have indicated repeatedly over the last week, ES is hovering in the same range over and over again, with only few opportunities in our usual (2H+) time frames.
ES tested high 1180s again (2H Fib) on Monday to subject to profit taking on strong resistance, to find support above (D) resilience (~1172). Longer (D+/W) indeed provide incredible support and have so far squashed any attempt to retrace. The high 1180s remain the crucial test area, and while the pattern looks potentially complete on (D+/W), one cannot discard a breakout north bringing in more energy to reach April highs again. In the meantime, the same hesitation should continue for a while.
TF often comes to the rescue but only provides little extra clues this time. It is congested the same way on (4H) with only a slightly more apparent inclination to retrace. However, the 687 support level (also resilience level on the (D) chart), looks stronger so we do not anticipate much change in the next couple of days. We will mostly check for possible lower highs, and whether TF tries to keep below the 703 mid point.
EURUSD retraced on 1.4 at the open on Monday to retrace in a (1H/2H) channel. However the (4H+) range tends to contract which must lead us to a decision point. The (D) chart would indicate erosion more than outright profit taking, and (W) while definitely ready for some limited profit taking is still pointing higher overall.
T-Bond Fut (@US):
Retraced up to Fib, but still in a (4H) down channel as anticipated. Bearish pressure is there but quite weak on (D) range lows. In fact, an up swing is quite possible (D).
( Posted 7:15 AM UK )
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