The Precise Take – Equities get needed boost ahead of full news week

Leaders Analysis:   Everything’s pretty much in alignment, confirming overnight strength in equities. 30 Year T-Bond futures have broken support and yields broken through 50 day moving average resistance.  Downside target is now 116’16 to 117’8 in the futures.

Medium Term Analysis:  Intel’s after market earnings cleared overhead resistance and equities are in shape to weather some bad news this week.  As we write, JPM has excited the markets as well.  Though overbought at present, 1126.25 is still the next major upside target.  If the markets can avert disaster until the end of next week, the M2 contraction we have been noting will not have as amplified an effect and seasonal liquidity should return to the general economy.  The unprecedented redirection of bank non-borrowed reserves (as a result of Fed monetization) has carried the markets, with room to spare in a short while.

Trading Today:  Yesterday, the ES bounced precisely off the 1063.00 highest volume market profile point of control, and it has not looked back.  As we write, the markets are having a neutral reaction to Retail Sales.  We prefer to be buyers on a retracement to…

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