Market Update, 2009.05.23

23. May 2009
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Below is a fork on the daily ES that I've been watching for quite some time.  Price seems to respect these levels very much.  We also see the stochastic approching OS and perhaps forming a False Bar long.  This may setup the target of 995 as mentioned in this post. 
 
 
 
Zooming in a bit closer, if we take a measurement of the last pullback (small, left, red arrow), then take a Fib Ext from our recent highs, we see the 100% level (881.25) has acted as support for the last couple weeks.  Next level down (assuming we break out of the fork), is the 127.2% level at 868. 
 
 
 
Rally argument:  It would take a real "rip your face off" rally (blue arrow) to hit our target in the amount of time dictated by the last move (two red arrows, approximately 3 trading days from now). Though, we will be returning from the long Memorial Day weekend and a fresh new week, so anything could happen.  Also note the 1.272 level (992) is very close to the 1.618 target (995) mentioned in this post.
 
 
 

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