Markets: Your Must-Read Morning Report 7.6.10
The exclusive Markets Morning Report is supplied by Precision Capital Management.
The Precise Take – Equity futures attempting oversold bounce
Big Picture Analysis: After a disappointing close Friday and strong selloff on the overnight open (low of 1002.75), the ES has rebounded sharply by over 25 points. The impetus is purportedly a rebound in Asian shares led by Shanghai; however, it may simply be the absence of bad news in an oversold state after a long weekend ahead of a slow news week. In fact, there are no news events of note until next week’s Retail Sales and CPI on Wednesday and Friday, respectively. This means the markets will be all the more sensitive to unscheduled news, whether good or bad. Below, the ES is about to break out of its lowest price value area (green). If it accepts in the next higher (purple), we could get the oversold short covering bounce that everyone seems to be expecting. The monthly pivot of 1059.75 is a reasonable target, and would be sufficient to…
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