Your MUST-READ Morning Stock Futures Cheat Sheet: Inflection point

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The Precise Take – Inflection point

Big Picture Analysis:  After stumbling a bit early yesterday, bulls were able to shake off a slightly disappointing Philly Fed Survey and rallied into the close.  Below in the 135 minute chart, we can see the ES hit trend channel resistance, and has backed off a bit.  So, is this the end of opex short covering, or is there more upside to come?  Evidence for the bulls includes new Fed liquidity, ability to rally off bad news and an extant short term trend.  Evidence for the bears is that many of the major indexes, both US and Euro, are at resistance areas, leadership is still hesitant (though we do note recent strength in MA, ISRG, AAPL, AMZN and PCP), and the fact that the situation in Europe is far from a resolution.  A break of the well defined trend channel in the ES would be difficult for the bulls to overcome but, until then, they retain the edge.

Trading Today:   Below are marked the support and resistance areas.  Consumer Sentiment at 9:55 am is often a market mover.  On opex days, seasonality favors the bears early and the bulls late.

Today’s  Scheduled News (all times EDT)

Major Market Movers
Consumer Sentiment at 9:55 am

Minor Market Movers
None

Tomorrow’s Scheduled News

Major Market Movers
Housing Price Idx at 10:00 am

Minor Market Movers
None


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