Your MUST-READ Morning Stock Futures Cheat Sheet: Zero

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The Precise Take – Zero

Big Picture Analysis:  Yesterday’s ISM beat facilitated a 15 point rally in under a minute in the ES, testing the prior day’s high just under 1230.  This would be the high of the day, however, as there was a slow, downward grind throughout the day and into the close.  Selling on good news is a bearish omen and, indeed, overnight, the ES traded down to 1190 just prior to the employment report, hitting 1179.75 in the moments afterwards.  The likelihood is for more downside into next week, with ~1150 the first downside target.  The lower the markets go, however, the more bullish we would be on the eventual upside turnaround, as a market clearing capitulation low could set the stage for a bear market rally into the end of the year.  Next week has no top tier economic reports, so the markets will likely focus on the speeches by the FOMC members and the POTUS.  In that regard, there is an interesting development with respect to a massive new mortgage-related program that might be announced in the coming weeks, which would have implications for both fiscal and monetary policy.  More on that next week.

Trading Today:   Below are marked the support and resistance areas.  Despite our bearishness going into next week, down gaps on Employment Situation Friday’s often put the day’s low in during the first 30 minutes, so there might be a high percentage daytrade long setup this morning.

Today’s  Scheduled News (all times EDT)

Major Market Movers
None

Minor Market Movers
None

Tuesday’s Scheduled News

Major Market Movers
ISM Non-Mfg Survey at 10:00 am

Minor Market Movers
None


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