Jul 162010

The European markets are mixed and the Asian markets are down. Postitive market news includes GE beating estimates and Goldman Sachs settling with regulators. On the negative side, Google missed profits per share estimates by 7 cents ($6.45 vs $6.52). The Euro continues to move up (now at a 9 week high), while the 10s are flat-lined. The ES has stayed in the upper half of yesterday’s range overnight. On the comp profile, 1080 is still the major LVN area below and 1093 is the HVN center above and the next major rejection area starts around 1019. There is a lot of resistance above up to 1100, then volume thins out making LVN areas large. Support below is defined primarily by yesterday’s price action which should provide some good areas for long fades. The ES did a pretty amazing turn around yesterday after the dismal economic reports by clawing it’s way back up to close down only by 2 ticks. This was the first down day after 7 up days. The 9:55am EST consumer sentiment report could determine the market’s direction for the day if it misses expectations. Be very careul trading around that time. Also be aware that today is options expiration day which generally adds volatility. There is uncertainty in the air as most companies are beating there earnings expectations and many economic reports are missing expectations indicating a slowing or softening economy. Uncertainity adds volatility which is generally a good thing for us. Just be very careful if the market decides to pick a direction and start trending hard.

 Posted by at 9:19 am

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