European and Asian markets down again (though the Shanghai Index is up half a percent), US Futures were trading under 1300, but have seen a bid following jobless claims data. Jobless claims showed improvement, but were below expectations, so it is interesting that buying has come back in. Question is, can it continue?
The ES traded all the way down to the 1293 support during the GLOBEX session as oil futures were bid up to new highs overnight.
Levels to watch today on the ES:
Resistance above at: 1310-1312, 1317-1318, 1323-1324
Support below at: 1299-1301, 1293-1295, 1290, 1285-1286, 1277-1279
Additional Points of Interest:
1) I mentioned in a post last Wednesday that transcripts from the FOMC minutes acknowledged that some Fed members believed that QE2 may need to be tempered down. This sentiment was echoed in a quote yesterday by Federal Reserve Bank of Philadelphia President Charles Plosser:
He said, "Should economic prospects continue to strengthen, I would not rule out changing the policy stance to bring QE2 to an early close."
Quotes like that probably won't help to strengthen the markets in the short-term.
2) Amidst global unrest, dollar not performing like the safe haven currency it has been in the past, though money has flowed back into US Treasuries. Other safe havens seem to be the Yen, the Swiss Franc, silver and gold.
Thursday, February 24, 2011
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