Your MUST-READ Morning Stock Futures Cheat Sheet: High expectations

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

The Precise Take – High expectations

Big Picture Analysis:  After an opening hour drive and subsequent retreat, the equity indexes rallied yesterday into the close, with the ES reaching the bottom (1176-77) of the three day trading range that marked the mid-August top (high of 1206.75).  With GDP and Bernanke’s Jackson Hole speech tomorrow, we might expect a quiet afternoon unless the rumor mills start turning again.  Expectations for hints of further easing seem to be running high, so there is the opportunity for some disappointment.   There have also been dramatic reversals in gold and long term Treasurys over the past few days, so we can envision any number of scenarios that will play out into early next week.  However, we’ll refrain from committing our short and intermediate term thoughts to pixels until we at least see tomorrow’s price action.

Trading Today:   We’ve received a few requests to return to the 30 minute chart, which provides more granularity with respect to potential reversal areas.  We indeed may do so soon, but if the risk markets head down and range expands again, we’ll wait a bit longer.  For what it’s worth, 1176.00 to 1177.00 remains major resistance, and we might consider a short a bit higher, from 1182.75 to 1183.50.  1166.00 to 1167.25 is first support, and we would also consider a long from 1161.50 to 1162.75.

Today’s  Scheduled News (all times EDT)

Major Market Movers

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

Tomorrow’s Scheduled News

Major Market Movers
GDP at 8:30 am
Consumer Sentiment at 9:55 am
Bernanke Speaks at 10:00 am

Minor Market Movers
Corporate Profits at 10:00 am

Click above images for larger charts.