Your MUST-READ Morning Stock Futures Cheat Sheet – 8.18.11 – “Inflation + Unemployment”

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

The Precise Take – Inflation + Unemployment

Big Picture Analysis:  After a brief rally yesterday to 1206.75, just above the prior days’ highs, traders took down the ES hard into the early afternoon.  Overnight, renewed fears of European bank problems facilitated a selloff to the low 1160’s.  As if that were not enough, this morning, CPI came in hot at 0.5% M/M and 3.6% Y/Y as Jobless Claims disappointed, leaving many to wonder if this is not evidence of the worst of all worlds: stagflation.  The short sellers from the last few days will begin the day in the green, and likely have at least ~1120 in their sights, though ~1100 or the absolute low of 1077 are certainly in the cards (basis ES).  Anything is possible in these markets and we cannot yet count out the bulls as there are a few more economic releases today.  But for them to have a chance, they will need to defend the 50% retracement of the recent up leg just below current price at 1152.00.

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

Today’s  Scheduled News (all times EDT)

Major Market Movers
Philadelphia Fed Survey at 10:00 am

Minor Market Movers
Leading Indicators at 10:00 am
Existing Home Sales at 10:00 am

Tomorrow’s Scheduled News

Major Market Movers
None

Minor Market Movers
None


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