Good morning..or perhaps that should be 'don't kill yourself yet'. With the EU summit headlines flooding the newswires overnight, the market is set to gap up big.
Futures are showing sp+20pts..that would be an open around sp'1349 - a very clear break over the 1335/40 resistance zone.
We have some key econ-data this morning, Chicago PMI 9.45am, and Consumer Sentiment 9.55am. Both could help to halt this madness.
I am looking for a reversal...but with the gap up as big as it is, it is going to need to be an extreme one, the sort of thing we only see once or twice in a typical year.
For those holding short overnight (myself included) this is something of a horror story. As Zerohedge noted though, the key news last night...'no new bailout funds'. NOTHING has improved. NOTHING can be improved in the EU.
Of course, as traders, such 'facts' don't matter in the day to day nonsense. How we close today will be as important as ever, not least for the June monthly candle. A close even in the 1330s (requiring almost a breakeven close!) would still be a real problem for the monthly outlook.
As noted, I'm looking for a reversal today...a big one.
Sincerely...good wishes for Friday.....this is one hell of a way to end June.