Your MUST-READ Morning Stock Futures Cheat Sheet: Three scenarios

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The Precise Take – Three scenarios

Big Picture Analysis:  After some early chatter of a French debt downgrade, rumors regarding the EFSF facilitated the rally at various times during the trading day, culminating with yet another story (this time from the Guardian) at the 3:00 pm window.   After 45 handles down in the ES, then 45 handles back up to highs, it’s been volatile trading.  All we can say is this is likely to continue for the foreseeable future, and the markets are likely to remain event driven for some time.  Expectations are for a resolution on the EFSF this weekend, but brinkmanship could very well continue into November.  Short term, bulls retain control and we see ~1260 as the next upside price target.  The less likely case is a double top scenario with a failure at 1230.  One final scenario to be on alert for is an expanding terminal (broadening megaphone) on the daily that might be developing.  In this case, we would see new nominal highs today, probably no higher than 1240, with a strong downside reversal over the coming days to take out the 1185 support area.

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Today’s  Scheduled News (all times EDT)

Major Market Movers

Minor Market Movers
EIA Petroleum Stats at 10:30 am
Beige Book at 2:00 pm

Tomorrow’s Scheduled News

Major Market Movers
Jobless Claims at 8:30 am
Exhibit Homes Sales at 10:00 am
Philadelphia Fed Survey at 10:00 am

Minor Market Movers
Leading Indicators at 10:00 am