Morning Madness

by Adam Beaty

• Futures are up moderately this morning
• /ES continues to hold support at the 61.8% Fibonacci Retracement (1237)
• ADP Employment Change beat at 114k vs 100k expected
• ISM Services due out at 900am CST - 53.7 expected
• AUD/USD was unable to hold the 20 day moving average yesterday and is putting the 50day to test today - look for a bounce off of 50 day moving average support
• EUR/USD is up strongly right now but currently battling resistance on the 50/100 day moving averages at 1.434 - a strong move would be to break through that resistance today
• USD/JPY has been full of indecision these last couple of days creating some very big doji candles - resistance sill at 78.04
• Bond Yields have been selling off rapidly putting in three very big down days - let's see if it can create a temporary bottom at yesterday's low (26.04) and pull back a bit
• Markets saw some serious damage yesterday as the debt ceiling decision finally came to an end - it was quite obvious the bears were looking to run but still a bit nervous of the decision - when it finally came out we saw a lot of relentless selling
• Market broke through many support levels yesterday but the one to continue to watch is the 1250 mark
• Bulls need to find a way to pull this market back off the 1250 mark and try to gain some ground - unfortunately most attempts to pull back will probably be sold off by the bears
• Bears are very overextended now - reaching way outside of the lower Bollinger Bands - not a lot of people are wanting to load up on shorts at these levels so look for a pullback or consolidation to work off these conditions and get better prices
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