The exclusive Markets Morning Report is supplied by The Precision Report.
The Precise Take – Stalling at resistance
Big Picture Analysis: Yesterday, after a strong opening drive into the 50% retracement of the entire down leg a few ticks below 1230 (basis ES day session), the ES showed signs of weakness, and bears took over for most of the day, though there was a rally into the close. We’ve been on alert for a slow down in momentum as a potential reversal signal, and that is what we are beginning to see. Given first-of-the-month bullish seasonality, it is possible we could have a strong day today. Barring that, we expect bears to start testing the waters again. Heading into the three day weekend, there remain two big reports, ISM Manufacturing today and Employment Situation tomorrow. If they disappoint, it will be incumbent on the bulls to quickly reverse any selloffs. Ironically, though, any misses provide that much more justification for further easing at the next FOMC meeting.
Trading Today: Below are marked the support and resistance areas.
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