Friday, September 04, 2009

Morning Briefing for September 4th: Trying to Turn Around

Here we see a 60-minute chart of the S&P 500 e-mini (ES) futures. Note that candidate transition pattern that I wrote about a little while ago. Observe how selling volume was quite high on 9/1 and has gradually petered out since then. Now, on the heels of a largely favorable set of unemployment numbers, we're seeing the former resistance in the low 1000 area now trying to act as support. If that support can hold, we should see a nice swing opportunity to the upside.

Meanwhile, we see some dollar strengthening; gold and oil are off their highs; and 10-year Treasury yields are higher, but also off highs. We'd want to see these intermarket themes kick in to support any upside rally in stocks.