The Precise Take – Low volume start to truncated, report-laden week—Q2 09 ends today

Despite some key breakouts in markets we have been watching (Dow above 200 day MA again; KBW bank index and XLF financial ETF break above resistance; ES entering key gap area), the markets have not been able to generate follow through (the small and mid caps relative to the S&P 500 overall charted yesterday did not break out of resistance).  Perhaps everyone is waiting for the quarter to end today or for any of the plethora of reports coming down the pike into the three day weekend.  With actual human traders on vacation or gearing down, program trading could produce some violent swings, especially on Thursday’s Employment Situation report at 8:30 am (often a reversal day or close to a reversal day).  Today, Case-Shiller Home Price index at 9:00 am (expected bearish) should set the tone into the open, but Consumer Confidence could…

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