Your MUST-READ Morning Stock Futures Cheat Sheet: Consolidation near highs

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

The Precise Take – Consolidation near highs

Big Picture Analysis:  After the Philly Fed beat yesterday, traders could not push the ES above 1215, but the bulls bought the ensuing dip and closed the day strong.  From the 135 minute chart below, it is evident a high volume base has formed that stretches down to the 1180’s.  This is markedly different from previous rallies that had already stalled and reversed at this point.  Not to say the market cannot go down, but odds favor resumption of the rally.  The yellow trend lines that form a channel are also strongly in play, and another scenario to keep in mind (though less likely) is a bull trap that reverses strongly at 1240 or just below.  It is common on options expiration day to have a strong selloff in the morning that is sometimes reversed in the late afternoon.  Of course, headline risk in a low liquidity environment can easily trump such seasonality, which has been common recently.

Click above images for larger size.

Today’s  Scheduled News (all times EDT)

Major Market Movers

None

Minor Market Movers
None

Tomorrow’s Scheduled News

Major Market Movers
None

Minor Market Movers
None