Monday, July 27, 2009

Morning Briefing for July 27th: Consolidating at the Highs


Here we see how the S&P 500 e-mini (ES) futures moved to new bull highs in overnight trade before pulling back into the range from the last two trading sessions. (See the prior post to place this action into full context). A key to the morning trade will be to see if we can stay above that range and continue to build value higher vs. retreat into the range back toward Friday's pivot. Given the overnight strength overseas and the bullish market themes from the overnight trade, the follow-through in early U.S. share trading is quite modest, suggesting to me that the upmove may be tiring. I'll be watching sector performance from the open as well as those intermarket themes to gauge whether this morning offers trend continuation vs. consolidation.
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3 comments:

yieldofdreams said...

Could you please share how you are watching sector performance from the open? What resource or tool are you utilizing to monitor this?

Brett Steenbarger, Ph.D. said...

Hi YieldofDreams,

I watch the sector ETFs (change from open on my quoteboard) and I watch the 40 stocks in my basket that are taken from the eight major sectors that I follow. Prior posts detail the composition of the basket--

Brett

Jeppetto said...

Dr, Brett, looks like you hit the nail on the head - again!