Tuesday 9/7/10 wrap up

Well we rolled over as anticipated.  Now the question is whether this will be a correction to an ongoing rally or the start of more serious selling.  Answer: to be determined.
Looking at the rally from last Tuesday's lows the Fibonnaci retracement levels are ES 1080.50 (.382), 1072.50 (.500) and 1064.25 (.618).  We're at the ES 1090 area which is the .236 level and is strong support.  If we break below this the 50% retrace area around 1075 looks important.