from the trading desk of CFRN...
The Bears dominate the trading field today! The E-Mini S&P 500 was on the ropes today as the bears dominated the field. The fear of contagion in the Euro Zone held the bulls back. Ireland’s parliament worked on the austerity budget and the US Dollar spiked up with the Treasury Yields. President Barack Obama approved the Bush Tax Cuts for another 2 years. This plan could cost $501 Billion dollars in Tax Revenue that our government is in dire need of.
To add to the negative sentiment for the day, US Federal Chairman Ben Bernanke spoke of caution in that we need more vigorous growth for our economy to achieve any price stability.
The market failed to break out of the congestion pattern that we spoke of yesterday. The high of the day was $1235.00 at about 8:15 CST and the low of $1219.00 the previous evening. The close was lackluster as traders had little motivation to buy.
The market closed yesterday at the 1221/1222 CFRN Weekly Trade Zone. Today the 1235/1236 WTZ capped the market on the upside and a trend down day brought us right back to the 1221/1222 zone at the close.
We have no US Economic Reports out Wednesday with the exception of Oil inventories which is a medium impact report at best.
|S&P 500 Emini Futures / ES|
The trend is now lower for the near term as the fears from the Euro Zone contagion spread over our markets. $1226.00 appears to be a point of control or comfort zone for the market. We look for a potential lower day and stand ready to sell any bounces.
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