Wednesday, September 30, 2009
Morning Briefing for September 30th: Mixed Market
We can see that stocks moved higher in premarket trading before shooting lower on weaker than expected employment numbers. We pulled back into the premarket range and then shot higher on better than expected GDP numbers--only to once again pull back into that range. As a result, we're trading at levels not far from where we were trading before those numbers. The lows from the employment numbers and the highs from the GDP release have set us up in a clear range, with the day's average price around 1058.75.
The U.S. dollar has strengthened vs. euro since the releases; oil is trading off its early highs; gold is higher. Yields on the 10-year Treasury note remain higher. I will be following intraday sentiment closely to see if we can sustain prices above the low 1060s resistance area in ES. If we cannot sustain that level, I'd expect a test of the premarket lows. I'll be updating market action via Twitter and intraday posts.