Your MUST-READ Morning Stock Futures Cheat Sheet – 8.16.11 – “Cat done bouncing?”

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

The Precise Take – Cat done bouncing?

Big Picture Analysis:  One week into the fledgling rally in equities and the ES is testing the 1200 level, with the day session range having contracted to under 20 points for two days straight on waning momentum.  Considering we will soon be in the middle of opex week, a time historically when short term trends tend to reverse, this is the point in the bounce at which we become suspect of further gains.  We are still eyeing the 1225 to 1230 area, which includes the 50% retracement of the down leg, but that is simply a target.  Were the ES to overshoot this area, we would still be skeptical of the ability of the markets to hold their gains unless accompanied by a massive breadth reversal.

Trading Today:   Below are the major support and resistance areas.

Today’s  Scheduled News (all times EDT)

Major Market Movers
None

Minor Market Movers
Industrial Production at 9:15 am

Tomorrow’s Scheduled News

Major Market Movers
PPI at 8:30 am

Minor Market Movers
EIA Petroleum Stats at 10:30 am


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