Mar 242010

Despite all US and Eurex markets being in balance overnight, the morning saw pricing in of negative economic realities and are seeing the rally of late being a little overcooked. The durable goods coming up a hair didn’t produce any reaction of course and all eyes are on new home sales, though nobody expects much. We just need a feather at this point to correct at least back to the 48 handle. As far as fading the edges this morning, there was too much volume at the high yesterday to consider fading the OH. Wait for YH at 70.50 and watch order flow carefully. If for some reason it breaks high, DO NOT try to trend trade past about 75 as there will likely be a SHARP rejection somewhere in the mid to high 70’s. Fading the underside is even more tricky as the short term support could either be at 63.50 or 62. Order flow will tell the story. There are BIG clusters of support under 62 as well at 61 and 59. Simply put, we wouldn’t join the breakdown party until under 58 and trade into 54.50


 Posted by at 9:22 am

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