Your MUST-READ Morning Stock Futures Cheat Sheet: Eyes on the Fed

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

The Precise Take – Eyes on the Fed

Big Picture Analysis  Recent developments highlight the perils of trading a liquidity driven rally with sketchy underlying leadership.  It seems the Greek referendum issue may stretch into January–or it may be cancelled–or it might be extended.  Threat of a France downgrade may have impacted the decision to pull a 3 billion Euro EFSF bond offering earlier this morning, which does not bode well for the rest of the trillion to be sold.  Looking to the charts as our guide, and noting that volume has been a particularly reliable guide to major support and resistance, 1248 in the ES, then 1262 have shaped up as resistance and would likely attract new shorts on any rally today.  The low 1180’s remain critical support, with 1205 (near yesterday’s low, also strong support.

Today is FOMC day, terminating a scheduled two day meeting.  As per the new format started earlier in the year, the announcement will be made at 12:15 pm with Chairman Bernanke performing a press conference at 2:30 pm.  Without much precedent for this format, all we can say is the markets tend to get illiquid during the conference, as information is released and digested.  Expectations are for a downgrade of economic expectations in the announcement, with hints of a new large scale asset purchase program (QE3) focused on Agency MBS securities to be stated in the press conference.

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Today’s  Scheduled News (all times EDT)

Major Market Movers
ADP Employment at 8:15 am
FOMC Announcement at 12:30 pm
Bernanke Press Conference at 2:15 pm

Minor Market Movers
EIA Petroleum Stats at 10:30 am

Tomorrow’s Scheduled News

Major Market Movers
Jobless Claims at 8:30 am
ISM Non-Mfg Survey at 10:00 am

Minor Market Movers
Productivity & Costs at 8:30 am
Factory Orders at 10:00 am