S&P Futures Update for Aug 3, 2012

Following the ECB announcement, the S&Ps gapped open lower, filled the Gap above and then sold off to 1349.25. Value was clearly lower, however a late day short covering rally closed the S&Ps in the top third of the daily range. Treat Wed's low as resistance above. After settling below 1375 for 2 days in a row suggests that we continue lower - the 7 point Gap starting at 1346.50 becomes the destination. Gap's are another form of "Excess" - Treat the bottom of the Gap 1339.50 as support.

Thursday's Profile (above) left several Anomaly's - which are often revisited the following day or two. Employment data is due out tomorrow and will set the tone for the day. Question is do we Open in or out of Balance relative to Thursdays Value.