After breaking the (4H) range on the upside, we anticipated the upward retracement would be limited to the mid 1070s. The breakout was announced on shorter time frames on Tuesday so did not quite surprise us even though it perturbed the (4H+) outlook a bit, now turning to bullish congestion. ES could pass yesterday’s highs to now possibly reach 1088 or even low 1090s, but despite the slight change in tone, interrupting the longer term (D) congestive pattern, ES should eventually turn south again testing 1062 for support (D). (W) chart is still in bearish congestion mode.
TF has been leading ES for quite a while, so TF cues are often used to possibly adjust above commentaries accordingly. TF rose slightly higher than our conservative target yesterday (low 620s). 625-628 is now quite a strong resistance area and we still do not change our (D/W) outlook of a congestion eventually aiming lower within the daily range seen these last few weeks.
EURUSD: We followed it quite successfully to our 1.285 target yesterday (Twitter) where it has then retraced slightly. We will watch for a test of the strong 1.282 resistance level (2H-) with due consideration that (4H+) time frames have now also turned to bullish congestion up to (D) Fib around 1.285 – 1.287. While we do not see the Euro climbing significantly, this may be a sign that recent (D/W) lows will hold, as mentioned in previous reports.
T-Bond (Symbol:US): stalling as mentioned already, but (D/W) could still aim a little higher, congesting near the approaching very strong resistance area (recent highs to max 1.375).
( Posted 6:25 AM UK )
Regular Twitter updates today until 5 PM UK, based on (1+) time frames.
