The Precise Take – Markets take first steps toward painting the tape into next Tuesday

Markets discounted a worse than expected Jobless Claims pre-open and rallied on [insert reason], with bonds also up on a good showing at the 7 Year Auction.  Bernanke’s low profile Announcement has so far been a success, with the minor reversal in equities and bonds on Wednesday, being overshadowed by yesterday’s material reversals for the better.

As we write, Personal Income released at 8:30 am was better than expected  and saw a surge into the countertrend high of 918.75 (high of 919.00) and has reversed downward.  [We never recommend taking countertrend longs around news, for the record.] As long as the markets can hold the daily gap area of 908.50 (with 909.25 an important 50% retracement for new longs), we expect…

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