Your MUST-READ Morning Stock Futures Cheat Sheet: Don’t fight the Fed

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

The Precise Take – Don’t fight the Fed

Big Picture Analysis:  Yesterday’s climactic run-up to test the September 8th high just under 1200 in the ES was met with strong selling into the close.  Overnight, losses were pared in European trading, and as we write at 9:00 am, the ECB and Fed have announced they will conduct Dollar liquidity swaps.  This is what we described and expected in early August as a stopgap measure for the central banks to meet the Dollar funding needs of the cash strapped European banks without needing FOMC approval.  Inasmuch as this is a repeat of the late 2008 measures, it could be seen as a sign of weakness.  But, nevertheless, it is liquidity providing, and the risk markets should run with this short term.

Trading Today:   Below are marked the support and resistance areas.  There’s a lot of news to digest this morning, so expect volatility. A break of the 1182-83 area warns this is potentially a “sell the news” bull trap.

Today’s  Scheduled News (all times EDT)

Major Market Movers
Philadelphia Fed Survey at 10:00 am

Minor Market Movers

Tomorrow’s Scheduled News

Major Market Movers
Consumer Sentiment at 9:55 am

Minor Market Movers
Treas Int’l Capital at 9:00 am

Click above images for larger charts.