On Friday morning, ES bounced to MM pivot level (low 1090s) to only resume its downward course. The next stop on the way down is near the next support level around 1060 to 1062. The daily chart however shows a huge oversold situation hence a good retracement potential is there some time this week, and 1062 could be the level where buyers could come back to the party. The weekly chart is about to break also, so this coming support level will be critical for the rest of this first quarter this year.
Following largely the same dynamics, TF should be aiming a little lower. 600 is a support level right now, but the 593-595 area looks a lot more probable target now. Note however that we are not yet in a bear market as such on the weekly chart.
Little needs to be said about EURUSD which is definitely aiming at our 1.375 target. A pause on 1.379 will however be necessary (stall level).
( Posted Sunday 1:40 PM UK )
Monday 11AM Update: EURUSD is currently retracing to 1.392, but this does not affect our bearish scenario.
