The exclusive Markets Morning Report is supplied by The Precision Report.
The Precise Take – ECB promises more liquidity
Big Picture Analysis: Trading has been volatile this morning, as the markets have reacted to every word from Mario Draghi, ECB president, regarding new measures the bank will be taking to ease frozen credit markets. Though the rate cut of 0.25% was expected, other measures regarding collateral and liquidity terms fueled the initial up surge. We expect the markets to remain volatile and headline driven today and tomorrow. From the technical perspective, the ES is still simply trading inside its established trend channel. We had been watching ~1270 as major resistance, so a break of the channel should facilitate a selloff to the next major target at ~1220.
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