E-mini Trading

The Fundamentals:

- Construction Spending came in at 0.9% (consensus 0.5%), while the ISM Index report 
came in at 62.8 (consensus 57.0)...  Although strong economic data has not been 
successful in eliciting market rallies of late, Monday's session proved differently as 
the major averages, as well as the small-cap Russell 2000 and mid-cap S&P 400 closed 
at new 52-week highs (Briefing.COm)

- Some analysts are viewing today's challenger layoff report as a "psychological" 
hurdle in regards to the unemployment situation.  If this number proves positive, the 
market may get a boost.  Otherwise, we should expect another quick retracement as 
investors struggle with long positions at higher levels in the market.

The Reports:

- Nov Challenger Layoff Report   9:00

The Technicals:

- The short-term and intermediate trends remain up. A close above 1069.00 keeps the 
trends moving higher.  A close below 1059.00 moves both trends lower.  Anywhere 
between the two and we should expect the market to begin consolidating.

- The market closed on a 52 week high, and made 18 month highs as well.  With the 
market trading lower in the overnight session, I would expect some sort of 
consolidation today.


The Long and the Short of it:
The overall fundamental strength of the market has surprised most, and with this 
factor of surprise we are seeing investors not willing to buy the market at higher 
levels.  It appears that buyers are in constant need of reassurance of these levels, 
and as buyers wait for reassurance the bears have been able to capitalize on quick 
retracements.  Technically the market is strong as well, but with 18 month highs and 
the uncertainty of the economic recovery the market will have a tough time with any 
sort of follow through today.  I am looking for the market to consolidate today, with 
a continued up leg later in the week.  Just in case, i am wrong and the market shows 
strength today, I will hold off from selling until the R1 level is tested, and I will 
wait to be a buyer until the S1 level is tested.



GOOD TRADING!

Michael A. Cavanaugh
My Futures Online
[EMAIL PROTECTED]
1-888-942-7829


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