Economic reports from Europe and Asia showed accelerated growth, fueling rising markets including the US indexes overnight. The Euro has been moving up and is back to it’s highs of yesterday while the 10s are moving down. Both are supporting the US markets climb. The jobless claims showed a small 3K drop this week which was actually a little less than forecasted. The trade deficit has risen to the highest level in a year. Neither report affected the US markets much. As I’m writing this commentary, the ES has broken through it’s overnight highs and is quickly approaching the R1 pivot (which is the 68.25/69 fade area). Given the ES is already up 16+ points pre-market, be careful with fading into strong momentum. Although there is nothing other than the European and Asian news fueling the market this morning, I would expect plenty of opportunities for fade trades. There is plenty of resistance levels above and support levels below. The areas listed in this morning’s sheet should provide the best opportunities.
Update: The levels today are based on the Sept 10 contract.