Your MUST-READ Morning Stock Futures Cheat Sheet – 8-4.11 – “Bulls passing the baton?”

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

The Precise Take – Bulls passing the baton?

Big Picture Analysis:  Risk markets received all but the slightest boost from the resolution of the debt ceiling earlier this week, and have reacted very bearishly to several negative news releases.  Our proprietary liquidity indicator is flashing the least liquid readings since August 2010, and the bullish potential in market structure has reversed.  Indeed, nine quarters into this bull market, we must consider the strong possibility that it is drawing to a close or has already ended.    Looking ahead, the monthly Employment Situation is tomorrow, and there is an FOMC meeting next Tuesday.  Speculation about a new round of large scale asset purchases (QE3) abounds, but it remains just that: speculation.  For now, we will proceed cautiously and reduce position size in deference to the erratic price action.

Trading Today:  In this low liquidity environment, the projected range should be taken with a grain of salt.  However, for what it’s worth, the lower end of the projected range includes the overnight low and daily S1, from 1236.00 to 1237.25.  We would also consider a long from the 1230.00 to 1231.00 area, but likely not below.  The upper end of the projected range includes yesterday’s settlement, and we will closely watch the 1247.25 to 1248.75 area as potential resistance.  We would also consider a short from the 1257.00 to 1258.00 or 1264.00 to 1265.00 areas, but likely not above.  No scheduled news today.

Day Trading Guide

Upside Price Action Targets
1339.25, 1334.50, 1320.50, 1315.00,
1303.50, 1284.50, 1270.75, 1257.00

Downside Price Action Targets
1233.75

Today’s  Scheduled News (all times EDT)

Major Market Movers
None

Minor Market Movers
None

Tomorrow’s Scheduled News

Major Market Movers
Employment Situation at 8:30 am

Minor Market Movers
Consumer Credit at 3:00 pm


Click above images for larger charts.

More from The Cheat Sheet