futures higher ahead of earnings & bernanke speech
SP 500 E-mini Future
|30 min ES|
The ES has remained relatively quiet throughout monday night and tuesday morning, which likely will not last much longer if the bonds start wiggling. Beyond the ES, the risk complex is relatively tame following upbeat AA earnings after the bell Monday
|1 hour ES|
Downside levels to watch are 1559.25 as immediate support with 1555 being the line in-sand before the price enteres the break out level of yesterday afternoon @ 1552.50. The 1546 – 48.25 level is important support; especially if the bonds start fighting with the tape.
Gun to my had, one should expect consolidation today with earnings dictating much of the trend.
FX & T-Complex
|1 hour DX|
Currently the DX is lower by 0.40 % to 82.535 with 82.50 as support before last fridays tail low of 82.31 comes into play. If the DX can reach that low crude oil futures as well as the ES should remain more orderly as days where the DX is decisively green the ES gets very funky.
Currently the 30 year bond future is lower 0.08% to 147’06 after trading as low was 146’23 which makes that level the line in sand before 146’18 comes up.
Over the past 30 minutes the ZB has retrace some 12 ticks straight up, this is largest sustained up move since last Friday’s NFP rip, which does have me a bit concerned about upside IF the bidding continues as a break over 147’12 would not be goo for buyers of risk over 1560.
|6E 4 hour zom|
Japanese yen futures are slightly high this morning after making a fresh low early Tuesday but has since regained support; this likely the reason why crude has remained largely flat since Monday evening.
The euro/usd is stronger through up -0.42% to 1.3064 just under 1.3075 as of this writing; with break out potential over HOD into 1.308 and possible 1.31. A strong 6E is normally good for equities IF bonds cooperate..
The lower line in sand to watch for sell stops under is 93.38 with 93 being support from Monday.
If 93 fails you can bet the price will move 50c lower into 92.50; play the 50c breaks of support or resistance as it is usually rewarding if stops are used to catch entries on the breaks.
|R1: 1555.50||R1: 2795||R1: 93.80||R1: 934|
|R2: 1557.75||R2: 2805||R2: 94||R2: 937|
|S1: 1552||S1: 2785||S1: 93.45||S1: 930|
|S2: 1549||S2: 2770||S2: 93||S2: 925|
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