The Precise Take – Equities bounce from support as summer draws to a close

Big Picture Analysis:  Yesterday, the third test of 1037 was a charm–for the time being–as a strong close yesterday precipitated an overnight rise to test Monday’s opening area in the low 1060′s.  We would expect shorts to re-exert at the 1069-71 resistance area or 1077-81 area.  The risk markets are friendlier overnight, with the US Dollar down, and the Euro up, against their major crosses.  The three day US Labor Day weekend lies ahead with some major reports in the interim, beginning with ISM today at 10:00 am.  We may not get an intermediate term trend underway until traders return next Tuesday, so be on alert for continued reversals.

Trading Today:  The upper end of the projected range contains the new monthly pivot and day-session-only R3, from 1069.00 to 1071.00.  The 1062.25 to 1063.75 area is also strong resistance and contains the daily R2′s and previous price action.  The lower end contains yesterday’s high and day-session-only R1, from 1053.50 to 1055.25.

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