Your MUST-READ Morning Stock Futures Cheat Sheet: Rallying into resistance

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The Precise Take – Rallying into resistance

Big Picture Analysis:   No big news over the weekend, and as we write, US equity futures are working off some of the post-FOMC downside.  The ES made a high of 1150.75 and is approaching major confluence resistance around 1155-1160, where we have the 50% retracement of the down leg, MIDAS and volume resistance, in addition to  the top of the professional gap created last Thursday.  Above, and short covering could fuel a move to test the low 1180’s breakdown area.  We believe, however, that price strength will attract bears, and for this bounce to last, it will need to be fast and furious, such as July, 2009 or September, 2010.  The situation in Europe is likely to continue to be a thorn in the side of the risk markets, and there continues to be no clear timeline upon which things will be resolved.  Accordingly, we can expect continued volatility and rapid reversals in sentiment.

Trading Today:   Below are marked the support and resistance areas.

Today’s  Scheduled News (all times EDT)

Major Market Movers
New Home Sales at 10:00 am

Minor Market Movers

Tomorrow’s Scheduled News

Major Market Movers
Consumer Confidence at 10:00 am

Minor Market Movers
S&P Case Shiller HPI at 9:00 am
State St. Investor Confidence Idx at 10:00 am

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