Yesterday I was looking for some sort of direction into the close, but we ended the day with a fizzle, stuck within the same range previously noted.
On deck later this morning are the following econ reports with consensus expectations noted.
Thursday, 8:30am, Initial Claims 450K
Thursday, 8:30am, Continuing Claims, 4450K
Thursday, 10:00am, Existing Home Sales, 4.04M
Thursday, 10:00am, Leading Indicators, 0.1%
As usual, a big miss or big exceed on any of these reports will get the market going...at least short term. Speaking of which, econ reports out this morning in Europe showed their PMI growth to be slowing much more than expected, which has the FTSE, DAX and CAC all down about .75% as I type. This in turn has driven down US futures.
On the technical side, please refer to the chart below.
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| -click to enlarge- |
As was pointed out yesterday, the thick blue line represents the June highs. This acted as support during yesterdays session, but as you can see now in the pre-market, we are trading beneath this level (as a reflection of lower futures described above). We still have over 3 hours to go before the market opens, so too early to make any real forecast, but if we do end up gapping down to start the day, I would look for the bulls to at least try to test this blue-line level in the first hour of trading. The econ reports will set the stage however, so if you plan trading at the open, I would get in and out during the first 29 minutes, then get back in to trade the momentum move resulting from the 10:00 AM reports, if any.
Probably won't have time for any additional posts today. Good luck trading.
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