Morning Video 03-28-17 Posted at AM EDT
Danger Zone
Good Morning Traders.
After the significant drop in the morning, I was pleasantly surprised to see the Bulls pull off a very nice rally recovering nearly all of the move lower. The big question is can it follow through? Last night the futures were up about 30 points, but they are now suggesting a lower open of 20 to 30 points. We are truly in the danger zone so be very careful.
On the Economic Calendar this morning we have the International Trade goods number that has the potential to move the market at 8:30 eastern. At 9 AM we have Case-Shiller report, and then 10 AM the consumer confidence number, both of which would have to be a pretty big surprise to move the market. Keep in mind; we have more Fed speakers today. On the earnings calendar, we have 78 companies reporting today.
My plan of action for today is to be very cautious. That was great to have the rally yesterday, but that rally stopped right at resistance levels. If the Bulls don’t step up and defend today, the Bears could regain direction and move use lower. I will likely sit on my hands until we have some price action clues established. I suggest extreme caution because we are in a very dangerous place where big moves are possible.
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Trade Wisely,
Doug