Morning Update for Monday, October 7

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment: Bullish
Overnight Inventory Change: Net short
Inside Day/Outside Day: Outside
Location of price relative to market profile:Below value area
Notable overnight futures markets changes:
Up: CC, NG, 6J, ZW
Down:NKD, CT, CL, Indexes



News for the day:

NONE


*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention


Projected ES price action for the day: The indexes gapped down in a major way when trading opened for the London session, falling more than 1% in the premarket.  The 1670 level once again will be key as the "line in the sand" for the bulls to support.  The momentum is clearly to the bears, so I will be watching for either continued selling at the open or for bulls to hold the level and lift the offers.  Keep in mind that when there is a big gap up/down in overnight trading, prices typically trade more horizontally during the US session as most of the action had already occurred before the stock market opened.

Stock of the Day: Google, Inc. (GOOG)- at channel & cloud support

ES Daily Trend:Neutral/Bullish

ES Weekly Trend:  Bullish

ES Monthly Trend:  Strongly Bullish