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

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The Precise Take – Eyes on the Fed

Big Picture Analysis:  Buy programs were activated yesterday morning and strengthened throughout the day, though there was a brief interruption due to the DC earthquake.  Regardless, hopes are running high for Bernanke’s Jackson Hole speech on Friday.  And, in that regard, we caution traders not to get caught up in the euphoria, as there are likely to be some equally disappointing moments.  Over the next week, the Fed will be both gauging market response and guiding expectations through speeches, op-eds, news stories and press statements by other FOMC members.  From the technical side, leadership by the underlying stocks of the indexes is poor, and there has been no capitulation retest of the August 9 low to shake out some of the stronger hands.  The ES should be able to rally to at least ~1185, and could very well end up testing the ~1230 50% retracement of the down leg, but this is most likely a nascent bear market rally that will require extreme nimbleness to navigate.

Trading Today:   We’re again posting the 60 minute chart for support and resistance.  See Friday’s post for an explanation.

Today’s  Scheduled News (all times EDT)

Major Market Movers
Opex

Minor Market Movers
FHFA House Price Idx at 10:00 am
EIA Petroleum Status at 10:30 am
5 Yr Note Auction at 1:00 pm

Tomorrow’s Scheduled News

Major Market Movers
Jobless Claims at 8:30 am

Minor Market Movers
Kansas City Mfg Idx at 11:00 am
7 Yr Note Auction at 1:00 pm


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