Your MUST-READ Morning Stock Futures Cheat Sheet: Pump primed

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The Precise Take – Pump primed

Big Picture Analysis: Friday, the US indexes continued the post-Employment selloff in the first hour of trading, but the ES found support at 1268.25, and the day finished relatively flat.  The aversion of a trend day down after the rejection of the October high was somewhat constructive for the bulls.  Overnight, the fourth consecutive probe below 1270 (this time to 1267.25) was bought.  In the 135 minute chart below, we see a considerable amount of volume has been traded between 1270 and 1277.  Combined with the contraction in range, a directional move is likely setting up.  Odds favor the bulls in its resolution; however, a close below ~1265 suggests a correction instead.  Economic news in the US is thin this week, with Retail Sales on Thursday the only top tier report.  Consumer credit is released today at 3:00 pm EST, but is seldom a market mover.  Headlines out of Europe this week, including today, could be the major price drivers.

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To contact the reporter on this story: Bob English at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com