Friday, April 17, 2009

Market update - Apr 17th '09

The current configuration is another evidence that one should not enter a trade too early (unless one just takes swings in shorter time frames).

The 60mins chart is now on its strong resistance level, and it would maybe have been wise to be patient and not jump into reversing short too early. ES is still quite resilient anyway, particularly on daily and weekly charts, so only agressive traders will have a go at a short now even if a retracement is imminent.

We will however notice that the 60mins MTFS does not indicate a clear reversal yet, and the daily onehas not peaked yet even if seriously overbought. Shall we therefore see 875 being hit first ? That's a scenario that has been mentioned already in previous reports.

Note on tick charts (8 AM UK) a short is under way.

ER (TF): exact same configuration.
ER should technically retrace on stall level (468), but we'll cautiously wait for a red bar first.

( posted 8:05 AM UK )