Emini Futures Trading / Markets Firm Up On Globex

by DeWayne Reeves

E-Mini S&P 500 takes nose-dive on tidal wave of pressure!

 The E-Mini S&P 500 while floating in the coil this week lost its buoyancy sinking past its previous support levels.  Will this be a “bounce dive” where it drops to the bottom temporarily and floats back up immediately or is this a technical break that  may need to retrace to $1206.00?  The market is up about 25 % since September.  Perhaps a major retracement will be necessary.   Yes, perhaps today was our “perfect storm” as the Initial Jobless Claims grew,  the Trade Balance widened, our Trade with China was slack,  China’s Trade Deficit grows,  Moody’s downgraded Spain and the Libyan President Maummar Gaddafi led a wave of attacks on the Libyan Rebels as World Leaders look on.  The Muslim World is a place for the US to tread lightly as any intervention may be construed as an invitation to retaliate on our soil.  The waters were darkened today for traders looking to enter the markets.  Crude Oil and the E-Mini S&P 500 traded lower.  Gold and Silver even headed lower as the murky waters lacked appeal to traders attempting to garnish profits from another leg up.  First, the battle going on in Libya has escalated,  Gaddafi has become a stronger adversary than perhaps the Rebels had thought.  This turbulence is unlikely to be resolved any time soon.  The Euro Zone has met and created their rescue fund, has had bond sales and has suggested austerity programs to the debt ridden countries, yet Moody’s comes in with another downgrade.  Another wave of gloom for the market.  It was thought that the US Economic Reports were pointed to a recovery and yet today’s look at the Initial Jobless Claims held us underwater again.

Today’s Initial Jobless Claims increased by 26,000.  The US Trade Balance widens on imports. 

Tomorrow, Friday, we look forward to the Business Inventories and Retail Sales due out 7:30 AM CST!

Friday, what to expect!   The coil has broken and the market has some technical damage.  Today’s range was $1317.25 - $1292.75.  The market settled at $1294.25.     Our comfort zone or point of control for this market appears to be $1301.50.   The official game changer was the slip below $1298.50.  We remain bearish  as long as we stay below $1335.50.  We look for bounces to sell and a potentially inside to lower day tomorrow.

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The reason I love the sea I cannot explain -- it's physical. When you dive you begin to feel like an angel. It's a liberation of your weight. -Jacques-Yves Cousteau

Best regards,

Leslie Burton

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