Your MUST-READ Morning Stock Futures Cheat Sheet: Selling off from resistance

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The Precise Take – Selling off from resistance

Big Picture Analysis:  Yesterday, the bulls were able to generate follow through on the opening gap up and rallied into our first upside target of the low 1200’s overnight (high of 1202.75, basis ES).  Both the ECB and BOE left rates on hold, and after a disappointing Jobless Claims, the ES has traded down to mid-1180’s as we write.  In the 135 minute chart below, we can see the compelling resistance that has so far contained recent price action.  However, should bulls break above, ~1220 is the next target, then ~1245, which is the upper end of the trend channel and the declining 50 day moving average.  If the trend channel is decisively broken to the downside, the bear flag on the daily paints a target of about 975.  Bernanke speaks today at 1:00 pm and the POTUS in the early evening (not yesterday, as we had reported).  Expectations are running high for further easing, both monetary and fiscally, so headline risk runs high today.

Trading Today:   Below are marked the support and resistance areas.  Today, we are still in the September 2011 contract and will roll into the December contract tomorrow.  For TradeStation users, note the “@ES” symbol has already rolled over.

Today’s  Scheduled News (all times EDT)

Major Market Movers
Bernanke Speaks at 1:00 pm

Minor Market Movers
EIA Petroleum Stats at 10:30 am

Tomorrow’s Scheduled News

Major Market Movers

Minor Market Movers
Wholesale Trade at 10:00 am

Click above images for larger charts.