This Report May Get Some Attention…

Stock index futures opened
Tuesday’s session with gaps to the upside after strong overseas
markets fueled anticipation of an oversold bounce and good news from tech
bellwether Cisco Systems‘ numbers after the
bell. Decent broker buying of the SPM at the open put enough pressure on the
shorts to hold the gap, but after the first 2 hours, the buyers took an early
lunch and the contract drifted lower. Two tests and a hold of the session low
sparked some short-covering back up into mid-range, and after another choppy
range, a late push helped to squeak out a new session high. When all was said
and done, today’s action answered fewer questions going forward than Maria
Bartiromo did on Jeopardy (God, that was hysterical).

The June SP 500 futures
closed Tuesday’s session with a gain of +8.75 points, and finished in the top
1/2 of the daily range. Volume in the ES was estimated at a heavy 986,000
contracts, heavier than Thursday’s pace and well above the daily average.
Looking at the daily chart, the ES managed to just close Monday’s gap, and
posted a market structure low and NR7 day. There’s still an air pocket up to Fib
and 10-day MA resistance in the 1106-08 area.

The
US
Dollar
extended
its reversal off of its daily uptrend line and settled back above the 200-day
MA. The Semiconductor Index (SOX) showed good relative strength and was able to
settle above its 38% Fib and 20-day MA resistance. June bonds (ZB) continue to
slice, dice, and julienne (whatever that means) the longs that are still hanging
on. June bonds posted a market structure low, with room to retrace up to MA
resistance at 106.02.  I like bonds here on the long side on any signs of
weakness in this week’s reports. The Banking Index (BKX) completed an AB = CD
pattern with an inside market structure low, with room to retrace up into MA
resistance in the 95 area.

Wednesday is pretty quiet of economic
reports, but one report that is usually a market yawner but may get some
attention is the Treasury Budget at 2 pm ET, due to the fact that Greenspan has
been rambling a lot lately that the growing deficit could provide some bumps for
the economic recovery. CSCO gave its usual fertilizer earnings report (if you
don’t know what that means, feel free to
email me and ask) and I’ll be
looking to fade any gap up open.