Your MUST-READ Morning Stock Futures Cheat Sheet: Point taken

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The Precise Take – Point taken

Big Picture Analysis:  Yesterday, expectations of future liquidity won the day, as bulls made a point to make their conviction known.  Short term, however, we would not be surprised to see a retracement to 1245-50 in the ES to induce some doubt about the prospects of upside continuation and to work off the overbought status of the indexes.  Major volume support lies a bit below at 1230-35, and a breach would put intermediate bullish prospects in jeopardy.  This October rally is characterized buy lack of leadership, so that is something we want to see emerge over the coming days.   Next week is big in the US, with a two day FOMC meeting, culminating in an announcement on Wednesday and Employment Situation on Friday.  If there is a retracement, Wednesday would be a logical turnaround target.  In that regard, there have been hints of a new large scale asset purchase program for Agency MBS securities, similar to the $1.25 trillion program carried out from late 2008 to early 2010.  We would be surprised if it were announced next week, but hints might be forthcoming.  Consumer Sentiment (today at 9:55 am) is often a market mover.

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Today’s  Scheduled News (all times EDT)

Major Market Movers
Consumer Sentiment at 9:55 am

Minor Market Movers

Tomorrow’s Scheduled News

Major Market Movers
Chicago PMI at 9:42 am

Minor Market Movers
Dallas Fed Mfg Survey at 10:30 am