Perhaps, the initial knee-jerk reaction to the French sovereign downgrade by Moody's after hours has cooled off for the moment and both the Euro and ES are trading pretty close to levels seen before Moodys' announcement.
Any and all ES watchers know that we always see big momentum moves at the 9:30 open.
For now though, attention has now shifted to the Euro-Group meeting scheduled today and Greece with some fears about the next batch of downgrades to come.
We do have Bernanke and Lacker speaking today so that's a potential market moving event.
If the good housing news sent the market higher yesterday (sarc.) then we should be in for a treat today as Housing Starts come in at a 4 year high this morning in the U.S.
Some are complaining of the manipulated market in which the Euro regained all lost ground just after the European opening as if they didn't know the market is controlled in large part, well by... the market, that's the point of 3C.
So we'll see shortly what the market has in store, I'd like to see an initial move lower to set up some potential longs going in to tomorrow in options, I suspect the market will hold together over the coming weeks and fulfill the large positive divergences seen just about everywhere.
Also keep an ear open for news about Greece and whether the Euro-Group makes any bold moves, I highly doubt it, but as we saw overnight, if they don't want the market to fall apart (even as that was its initial reaction to the news from Moody's) then they'll support the market, but as I remind you, they won't make it easy, so keep your eye on the long term for probabilities and the short term for opportunities.
No comments:
Post a Comment