The Precise Take – Exercising caution

Big Picture Analysis – Headline risk out of Europe has the ES testing 1354.75 to 1355.25 support.  Below, and we might see a quick trip down to the 1349.75.00 to 1350.25 area, where value longs will need to assert.  Below, and we might have the makings of a short term correction.  If this early weakness proves to be another buying opportunity for longs, we would not want to be caught short above 1363.50.  Pending Home Sales at 10:00 am EST could be a market mover if out of consensus, though the Dallas Fed Survey is unlikely to be in any event.  Looking ahead, tomorrow is Durable Goods, Wednesday is GDP and the ECB’s LTRO auction and Thursday is ISM Manufacturing.

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