The Precise Take – Consolidating gains

Big Picture Analysis: Yesterday, the ES spent most of the day slowly making up the territory  lost overnight.  After the bell, an Apple earnings beat facilitated a run to 1216.50 to test Monday’s high, but the markets gave back some in European trading.  Focus now shifts to the Fed, with the FOMC Announcement at 12:30 pm EST and the Chairman’s press conference at 2:15 pm.  While this format is still relatively new, we’ve noticed that  trading tends to be erratic until after the press conference is over, which is about 3:00 pm.  Other potential market movers today are Pending Home Sales Index at 10:00 am, the EIA Petroleum Stats at 10:30 am.  While not usually a market mover, we note that the 5 Year Note Auction has been moved up to 11:30 am from its normal 1:00 pm slot.  Looking ahead, we have Durable Goods tomorrow and GDP Friday.  It looks like Europe has taken a back seat for now, but a choice headline could still provide an opportunity for a shakeout of weak longs.

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