Pre-Market Brief

Good morning. Futures are moderately higher, sp +7pts, we're set to open around 1653. Precious metals are a touch weak, with Oil lower by almost 1%. Bulls need to battle back >1654 - the hourly 10MA, to break the 3 day down channel.


sp'60min

Summary

So..we're set to open higher, but will the gains stick for very long?

There is considerable possiblity of an early morning fail, and then a further move lower to the 1635/25 zone late today/early Wednesday.

I do not see any significant risk of sub sp'1600s in the immediate term, baring 10yr yields soaring into the low 3s.
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For the moment, the only trades I will consider, are long in the 1635/25 zone..or short in the 1680/85 zone. The latter of which will be especially difficult this week.
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*no major news due today...and no significant QE-pomo for the bears to be concerned about.


9.35am...well, gains are weaker than pre-market..and indexes could flip red for a bit this morning.

Right now, bulls need 1655 to decisively clear the down channel.