The exclusive Markets Morning Report is supplied by The Precision Report.
The Precise Take – Rallying into the 200 day MA again
Big Picture Analysis: Friday saw some profit taking in equities, but another Sunday night gap up precipitated follow through that has led the ES back up to the low 1160’s. Sarkozy and Merkel meet this morning, so headline risk in either direction could surface. In addition, ISM Non-Manufacturing is released at 10:00 am EST and could be a market mover if out of consensus. Afterwards, focus will shift to the big ECB and EU meetings, this Thursday and Friday, respectively. 1245 is first major support now, with 1270 first major resistance. Inasmuch as the 200 day moving average in the ES (and the cash and SPY) has provided problems for the bulls since late October (allowing for some porosity), we would like too see a close above it that is not reversed strongly over the next few days.
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