1:03 pm EDT:  The ES has found resistance at the 61.8% retracement of the recent down move at 1060.25.  We did not consider it material as the major 1062.75 point of control looms just above.  However, it has been respected to the tick, so the swing shorts are attempting to defend what they perceive as one of the last holdouts for another (foiled?) attempt to short this market.  We may either get (1) a non-follow through over the next couple of days as we did with the May 18 09 Monday rally, with an eventual subsequent retest of today’s lows, or (2) a follow through such as the Jul 13 09 Monday that rallied unabated for nearly a month.  Either way, we would not look for swing long entries at these levels, preferring to see acceptance just above the 1062.75 point of control before entering.  Otherwise, chances of rejection of the value area are much higher below the point of control.  Having seen only the mildest of pullbacks today, we are not excited about chasing this market on a daytrading basis either.  Aggressive longs can enter at 1055.25, with a slightly less aggressive entry at 1052.25.  A reversal of the day’s gain is unlikely, but longs don’t want to see price trade below 1047.00, which would be an indication that the higher value area is being rejected.  The EuroYen has broken correlation by making lower lows as the ES has made higher highs today.  Equity longs will want to see this corrected by early tomorrow.

Correction to morning report:  We incorrectly identified today as the penultimate day in the quarter, when in fact it is tomorrow.  The similarity to the two previous end of quarters is lessened by this fact.