Your MUST-READ Morning Stock Futures Cheat Sheet: Teetering

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The Precise Take – Teetering

Big Picture Analysis:   On Friday, equities held up most of the day, but sold off hard into the close.  Overnight, the ES again traded down to the bottom of its trend channel, reaching 1111.25.  A general rule is that the more times a support or resistance area is tested, the less likely it is to hold.  This latest selloff marks the fourth probe below 1120 for the December 2011 contract, and odds of a quick capitulation down leg are increasing.  The first target would be the August 9th overnight low of 1072.00, and if it is definitively breached, the low 1000’s are in the cards.  The first step for the bulls to prevent this is a close above the trend channel at about 1140.  After ISM today, economic focus in the US will be Friday’s Employment Situation, but we expect European headlines dominate.

Trading Today:   See below for support and resistance areas.  ISM at 10:00 am should be a market mover.

Today’s  Scheduled News (all times EDT)

Major Market Movers
ISM Mfg Idx at 10:00 am

Minor Market Movers
Construction Spending at 10:00 am

Tomorrow’s Scheduled News

Major Market Movers
Bernanke Speaks at 10:00 am

Minor Market Movers
Factory Orders at 10:00 am

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