3
Dec
Posted in Intraday Analysis by Bob English |
10:18 am EDT: Volatile action so far despite the ~10 point range. The ES opened just above the value long area of 1107.75 to 1109.25 and advanced through the first sell zone with little resistance, then sold off at 1117.00, 1 point short of the projected range high, and has now found support again in the value buy zone. The ISM non-Mfg report disappointed a bit, and Bernanke is not helping equities much. As we said in the morning report, we don’t like longs below 1108.00.
The EuroYen has retreated a bit as the US Dollar has advanced a bit from support. This makes the prospect for new highs less so today ahead of tomorrow’s Employment Situation Report.
3
Dec
Posted in Pre-open Analysis by Bob English |
The Precise Take – ES respecting gains ahead of Bernanke confirmation hearings
Leaders Analysis: As we write, the EuroYen is trading above the confluence of its 20, 50 and 200 day moving averages. While the close today is most important, this is so far a bullish equities signal. The 30 Year yield (4.315%) is also poking above its 20 day moving average, after which there is little resistance until about the 4.43% level, which confirms. There are announcements for next week’s 10 and 30 Year auctions today, which could impact long term yields. The laggard is the US Dollar, which remains at support.
Medium Term Analysis: Bernanke speaks today at his re-confirmation hearing, and a minor fly has entered the ointment as Senator Sanders will force 60 votes to reconfirm. Bernanke should have them, but should he not, the uncertainty could quickly send equities down to lower support. Tomorrow is the Employment Situation report and, with today’s major news out of the way, we would be surprised to see material new highs, though nominal ones are possible. The exception would be if the US Dollar index were to break support at 74.17 to 74.25.
Trading Today: The 8:30 am reports today had minimal price impact. The buy zone is very strong value support from 1107.75 to 1109.25 in the form of a new long term point of control, yesterday’s point of control, yesterday’s settlement, closing VWAP and the daily pivots. Yesterday’s new high of 1115.50 (actual high of 1115.25) in confluence with the daily R1’s at 1114.25 is a sell zone, though we could see price grind higher to…
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