E-Mini S&P 500: The pit and the pendulum!
The E-Mini S&P 500 failed to achieve Friday's high of $1342.00 as news from the Euro Zone circulated that Greece is running out of time! The question is whether it was an exhaustion rally or a market that simply needed a pause. Tomorrow, the US Consumer Credit, regarded the barometer of consumer spending and confidence is forecast to fall from 20.4 billion to 7.7 billion now. The US has had some extremely positive data such as the Unemployment rate dropping to 8.3 % last Friday. Of the 290 S&P 500 companies reporting, 60 % had reported earnings exceeding expectations. The market lacked news today and what took center stage were the Greek bailout talks! The pressure is mounting for the Greek leaders to agree on the conditions of a $130 billion euro bailout. The troika, made up of the International Monetary Fund (IMF), European Union (EU) and the European Central Bank (ECB) wanted 15,000 public sector jobs cut this year and a total of 150,000 in job cuts through 2015. They also asked that the state run pension system be trimmed to keep it financially viable in the coming years. The Greek banks must also be recapitalized perhaps requiring $40 billion euros as they may hold the Greek government bonds. It is hoped that they may be kept independent. It is thought that the banks may be recapitalized through common shares perhaps without voting rights, but nothing has been concluded on the subject. Greece's economy makes up about 2.5 % of the Euro Zone and its unemployment has risen 18.4 % which makes it difficult to discuss cuts in front of protests of its people particularly in front of an election. German Chancellor Merkel has grown impatient with the delay in the talks as Germany perhaps would absorb most of the bailout costs. The EU officials declare that the full package of both conditions and funds must be agreed upon by February 15th in order to go through the legal channels and obtain parliamentary approval to acquire the bailout money. The bond redemption of $14.5 billion euros is for March 20th and in order not to default, the money must be in place. German Chancellor Merkel and French President Sarkozy have proposed setting up a separate account for Greek debt payments to offer security for creditors. The clock is ticking, but it is hoped that the deal is struck in time and the market may overlook it until the deadline is reached.
On the stock side: JP Morgan Chase and Co. (JPM) was down 0.37 % to $38.14. Citigroup Inc. (C) was down 0.72 % to $33.29. Bank of America (BAC) was up 1.66 % to $7.93. Alcoa Inc. (AA) was down 0.23 % to $10.74. Boeing Co. (BA) was down 1.15 % to $75.50. Caterpillar Inc. (CAT) was down 0.14 % to $113.78. General Electric Co. (GE) was up 0.16 % to $19.05. Halliburton Co. (HAL) was up 1.55 % to $37.40. Hewlett Packard Co. (HPQ) was down 1.07 % to $28.76. SPDR Select Sector Fund - Financial (XLF) was down 0.48 % to $14.65.
Tuesday, we look forward to US Consumer Credit at 2:00 PM CST!
E-Mini S&P 500 Chart.
Tuesday, what to expect! We maintain a bullish bias unless the E-Mini S&P 500 penetrates $1297.00! Tuesday, we anticipate an inside to higher day! Today's range was $1340.50 - $1330.25. The market settled at $1339.00. Our comfort zone or point of control for this market appears to be $1336.50. Our anticipated potential range for Tuesday's trading could be $1348.50 - $1322.50.
Please note that timing is everything and while we may divulge a brief overview of what may affect tomorrow's market, trade set-ups are strategically planned according to time and price action. In this marketplace, a trader needs to arm themselves with the weaponry to deploy into a complicated marketplace. The CFRN Live trading room is your boot camp for your commodity future.
Intra-day predictive set-ups act as a pathfinder to our members and individuals looking for discipline and structure added to their trading.
Excess generally causes reaction, and produces a change in the opposite direction, whether it be in the seasons, or in individuals, or in governments.
~Plato~
Join us in our LIVE "training room" at
and sign up for the FREE Trial.
The We The CFRN.net Staff Writers / D. Reeves - L. Burton - B. Schlichter
Our Weekly Trading Zones and Chart Room Access are emailed to members prior to the open every Monday. Join us M-F from 9am-1pm Eastern for Live Charts, Live Trading, and Lively Discussion.
Trading's not easy, but it can be simple!
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
