Today: The S&P futures have come away now from the 200 day, and are
either going to reload, and make another attempt, or have put in the turn and
are ready to trade lower. The buystalk shut off was at 1096.25, so we closed
still in buystalk, however right after the re-open, it was trading a bit lower and
the stalk shut off. We know then that are sentiment shifts to bearish and the
initial test of the veracity of this turn down comes at the daily support line, which
today is at 1087.50. The technicals are such that it looks like upon first efforts,
that the daily support line will be support, or if futures are able to penetrate, that
the line will act as “buoy” support and most likely will resurface above there
initially. We do have GDP this morning along with PMI, and I believe U of M
confidence numbers, so there is some fundamental action in the mix this
morning, but honestly nothing too earth shattering or enough to change the
wholesale course of action. So this morning 1087.50 is our target, and we want
to be a buyer at that level or if we break through, when the momentum stops,
look for a rise back above that level. A heavy fallout for some reason could
reach as far as 1077.75, the lower support area. On the topside this morning,
resistance begins at 1095.00 through 1097.00, and that area has a “heavy”
effect, so we should struggle to maintain above there initially, leaving us a 10
handle range basically with a 20 handle ATR, so one of those boundaries
should get a test.

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