Your MUST-READ Morning Stock Futures Cheat Sheet: Bulls establish tentative control

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The Precise Take – Bulls establish tentative control

Big Picture Analysis:   Bulls were able to tack on gains yesterday and overnight, though they were modestly pared on the BOE and ECB announcements this morning (both held rates steady, but the BOE surprised with a Stl75 billion QE announcement).  From the price action chart below, it is evident there is a nascent upward trend channel in the ES, and we note that in the recent choppy environment, one of the better indicators of a change in short term direction has been the break of the extant trend channel.  Conversely, if and when a channel breaks and the ES resumes in the original direction, we might have the makings of a lasting move.  Sometimes, it’s best to keep things simple.

Focus will now turn to the US Employment Situation tomorrow morning, and we will also continue to closely monitor market reaction to European headlines.  Greece’s refunding needs next week and the week after, in particular, merit attention, as a critical vote on the next bailout tranche has been delayed.  Monday is a US holiday and, though markets will remain open, banks will be closed and many traders will take off.  Tuesday, the minutes of the prior FOMC meeting will be released and parsed by traders for signs of future easing.  After that, the next top tier US ecnomic report is Retail Sales next Friday.

Trading Today:   See below for support and resistance areas.

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
Wholesale Trade at 10:00 am
Consumer Credit at 3:00 pm


Click above images for larger charts.

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