This is a guest post from Precision Capital Management
The Precise Take – ES consolidating after volatile after sovereign rumors fly
Leaders Analysis: The leaders have retraced slightly the strong moves the made yesterday and are equities neutral. We will be watching the US Dollar as it trades between strong support of 79.48 and strong resistance of 80.55. A close outside this range will be a signal as to the next move in equities.
Medium Term Analysis: The bailout situation is providing expected volatility, which we covered in yesterday’s intraday updates. A new fly in the ointment is the blizzards in DC have disrupted the economic calendar. Of note, (1) International Trade, previously scheduled for 8:30 am this morning, will be released at an unknown time today; (2) Bernanke will not speak today, but his prepared remarks will still be released at 10:00 am; (3) The Treasury Budget, previously scheduled for today, has been postponed to an unknown date and time; (4) Retail Sales, previously scheduled for tomorrow at 8:30 am, will be released the same time Friday; (5) Business inventories, previously scheduled for tomorrow at 10:00 am, will be released the same time Friday; (6) EIA oil stocks will be released Friday at 11:00 am; and, (7) EIA natural gas will be released Friday at 10:30 am. The Treasury auctions of today and tomorrow in the 10 and 30 year are on schedule. There may be further changes.
Trading Today: Overnight, the ES oscillated around VWAP and will likely open close to today’s value area. Barring additional sovereign bailout news, we expect a range day; however, we only expect…
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