Your MUST-READ Morning Stock Futures Cheat Sheet – 7.25.11: “Deal, or no deal?”

The exclusive Markets Morning Report is supplied by The Precision Report.

The Precise Take – Deal, or no deal?

Big Picture Analysis:  The US equity indexes gave up some territory early Friday, but had largely recovered it into the close.  With no resolution of the US debt ceiling, risk markets opened materially down overnight.  The ES posted a rare gap down of over ten handles, the largest such since just prior to the beginning of the 2009 bull market.  Though stops were run in the opening minutes down to 1322.00, early losses have been pared.  Market structure continues toflash bullish potential, and when the deal is finally sealed in Congress, we would expect the up leg to continue.  Though, we must note that continued inaction could facilitate further down side over the coming days, especially with bearish seasonality from the 2, 5 and 7 year auctions.  Earnings season carries on, and the big economic news items are Durable Goods and the Fed’s Beige Book Wednesday, then Q2 preliminary GDP on Friday.

Trading Today:  The lower end of the projected range includes price action from Friday and daily S1, from 1334.50 to 1335.25, and we will also closely watch 1332.00 to 1332.50 as potential resistance.  We would consider a short from the 1340.75 to 1342.25 area, but likely not above.  The lower end of the projected range includes a 50% retracement, the weekly pivot, the overnight low and daily S3, from 1325.00 to 1326.00.  We would also consider a long from the 1321.75 to 1322.25 or 1316.75 to 1317.50 areas, but likely not below.  No scheduled news today

Day Trading Guide

Upside Price Action Targets
1352.50, 1341.75

Downside Price Action Targets
1252.75, 1258.25, 1262.50, 1269.75
1274.50, 1292.50, 1311.00, 1320.50

Today’s  Scheduled News (all times EDT)

Major Market Movers
None

Minor Market Movers
None

Tomorrow’s Scheduled News

Major Market Movers
Consumer Confidence at 10:00 am
New Homes Sales at 10:00 am

Minor Market Movers
S&P Case Shiller at 9:00 am
Richmond Fed Mfg Idx at 10:00 am
State St. Investor Confidence Idx at 10:00 am
2 Yr Note Auction at 1:00 pm


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