Your MUST-READ Morning Stock Futures Cheat Sheet: ES attempting to break out

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

The Precise Take – ES attempting to break out

Big Picture Analysis: Yesterday, rumors of a massive mortgage refinancing fiscal stimulus (and subsequent denial) fueled the surge intraday and decline after the close.  This morning, a beat on both the payrolls number and household survey of the Employment Situation facilitated a quick rise to 1282.25, but as we write, the ES retreated to as low as 1274.50.  Notably, 1283.00 is a major interim high from October 27, 2011.  In general, we view long candlestick tails (wicks) on big news as a contrarian signal (see the 60 minute chart below [which has yet to complete as of publication]), so bulls need to push through 1283.00 today to avert what may materialize as a short term correction.

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