Fed Releases Beige Book

Reports from the twelve Federal Reserve Districts indicated that economic activity generally continued to improve since the last report. While many Districts described the improvements as only moderate, most Districts stated that gains were widespread across sectors...

See full report here.

ES Making an Attempt to Retrace into Previous Support

Futures strong this morning with US markets set to gap up. The question to ask is whether or not the prior 3 days of selling were the beginning of the next leg down in the market, or if it is just a negative blip that will be followed by another move back up to test this year's highs. I believe it is the beginning of a move back down below 1300. To confirm this outlook, markets shouldn't see continued strength past the first hour of trading this morning. One of two resistance levels needs to hold today. The first one is the 1319-1320 level which has been tested in pre-market. If that doesn't hold, The second is a retest of the base of the prior consolidation channel at 1325-1326. I will look for short entries at these levels.

Levels to watch today on the ES:
Resistance above at 1319-1320, 1323, 1325-1326
Support below at: 1314-1315, 1311-1312, 1305-1306, 1301-1302