The Precise Take – ES trying to stabilize ahead of heavy news morning

Leaders Analysis:  The EuroYen has now retraced to and bounced off its 200 day moving average, which has acted as support since May.  A close below would make the case for a more prolonged equities downturn.  30 Year T-Bond futures closed above their downward trend channel, confirming a breakout, though the yield is near the 20 and 50 day moving averages support.  Gold looks the strongest overnight, having rallied from the 1026.90 low of last Wednesday and Thursday. 

Medium Term Analysis:  Today will likely be the most difficult news day of the week, with three reports at 10:00 am.  After Friday’s inability to rally on a bullish Chicago PMI report, today’s ISM Manufacturing report will be watched closely.  Next week is light on news, so equities may be able to retrace some of last week’s losses after today, building on what should be a friendly FOMC announcement Wednesday.  New highs are unlikely, though.

Trading Today:    The early preferred trade is to be long into the daily pivots at 1041.50 to 1041.75, with an entry between 1033.00 to 1033.75, which includes Friday’s settlement.  However, if the ES opens near the pivots, we may instead…

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