Your MUST-READ Morning Stock Futures Cheat Sheet: Still climbing the wall of worry

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The Precise Take – Still climbing the wall of worry

Big Picture AnalysisDespite a precipitous selloff on the rumor (subsequently confirmed) that S&P would put on watch for possible downgrade all 17 EU states, the dips continue to be bought, both into the close yesterday and again overnight (we adjusted the most proximate two trendlines in the channel in the 135 minute chart below to contain recent price action).  With regard to that rumor, we do note that by our objective and proprietary measure of realized liquidity, liquidity is getting pulled in greater amounts in reaction to negative headlines, which might reflect increasing skittishness with respect to headline risk going into the end of week Euro meetings.  This has the potential to increase the severity of the next headline selloff, but the onus is on the bears to make their case.  No major scheduled news today.

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