22 Mar
Pre-open eMini S&P 500 Morning Report for March 22, 2010
Posted in Pre-open Analysis by Bob English at 8:08:27 7 CommentsThe Precise Take – Equity futures to gap down into support
Leaders Analysis: The US Dollar Index is up marginally overnight after rallying strongly the previous two days. Though intraday it has been higher this year, it has yet to close above 80.85. Accordingly, on the first test of this area in several weeks, it is unlikely to break through. The EuroYen is hugging its 20 day moving average and 30 year T-Bond yields are at resistance. All in all, the leaders are slightly equities bullish today; however, the overnight low in the EuroYen forex cross needs to hold intraday.
Medium Term Analysis: With no scheduled news today, the markets will digest the health bill passed over the weekend. This will be the first Monday since September 21, 2009 to materially gap down. Last Monday began with a minor down gap and, after a flush of weak longs, closed the day strongly. We could see a similar setup today. Durable goods Wednesday will be a sneak peak of Friday’s GDP. We would expect to see the bottom…
Pre-open eMini SP 500 Morning Report 3.22.10 | Wall St. Cheat Sheet
on March 22 2010 at 08:11:45
[...] This is a guest post from Precision Capital Management [...]
spainconsultant
on March 22 2010 at 08:23:29
Lower end is more likely seeing market going down at the begining no?
Also, I noticed is equivalent to under 1150 in spot market…… kind of totem number
~1143 is a great exit for me….compensates the week-end suffering
Bob English
on March 22 2010 at 08:29:57
Glad to hear you got out okay. If lower end is reached with subsequent rally to ~1150 intraday (and preferably close above), there’s a good chance the low will be in. If lower end does not hold, this correction will probably be more than just minor. Should have said that as well. Hope everyone reads the comments!
spainconsultant
on March 22 2010 at 10:01:26
Impressive!! reaction up again, violent, in an overbought market……… So impressive that starts to seems anormal to me……..or the new normal
Too high to buy……. too strong to sell……. too rainy to go around
sdg
on March 22 2010 at 10:52:06
81 and 135 min have formed a double bullish outside bar.
Bob English
on March 22 2010 at 11:12:34
ES stronger early than I thought. Hard to say if today’s move is over. Could also melt up overnight. Friday’s overnight and early morning range are so far being rejected, but ES is accepting just below. You could play a breakout of the 1157 to 1161 area, but personally, I don’t like breakouts. If you’re following the July rally parallel, today would be July 29. So far it’s been a reliable guide.
sdg
on March 22 2010 at 14:59:42
The early morning bear trap possibility was perfect. Your comment “ES is accepting just below” in the last post was a nice reminder to stay away from the short side. Thanks Bob.