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.