12:19 pm EDT:  An early move down to long term volume support was followed by a rally to the upper end of the projected range (1168.75 to 1170.50).  The ES looks strong and the leaders are supporting, so a break through is possible.  First target is the 1173.50 to 1174.00 level.  However, momentum could take it to weekly R1 at 1177.75.  If the ES cannot break 1170.50, a return to the ~1164-65 level is likely.

The Precise Take – Equity futures down on disappointing employment report

Leaders Analysis:  Prior to this morning’s ADP Employment report at 8:15 am, the leaders were equities bullish as the EuroYen had broken through resistance, and the US Dollar Index had sold off sharply after taking out yesterday’s high.  However, that has changed as the EuroYen is back below resistance.  Interestingly, both the US Dollar and equity futures sold off on the news. With mixed readings in the leaders, there’s no clear bias yet.

Medium Term Analysis:  Just as traders look at ADP as a sneak peek at Friday’s monthly Employment Situation report, today’s PMI will be a look at tomorrow’s ISM Manufacturing report.  PMI has been a market mover recently when it is outside expectations, but don’t expect much if…

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