YM Mini Dow and ES Futures Hold Gains Move Higher

Unemployment Applications Fall - Google Earnings Less Than Expected

The markets held on to their gains today when better than expected earnings were reported by Morgan Stanley and Bank of America. Economic reports helped sustain the gains with applications for unemployment benefits falling which was announced this morning. However, all the earnings reports were not good and some even unexpected. Google released earnings reports that fell well below market analysts predictions causing Google's stock shares to plunge almost 10% after the report was released. Google said less than expected advertising revenue during the holiday season was the reason for the poor earnings report.

ES Futures Trading 1/19/12

The ES emini futures contract traded above the pivot point (1297.75) the entire trading session having crossed above it at market close yesterday. Overnight trading saw the ES futures move up toward the mid-point level and crossing this resistance level during pre-market trading hours then making a run all the way to the R1 level as can be seen on the ES intra-day chart. Once the cash market opened however, the ES pulled back to the mid-point level and almost touched it as can be seen by the long downward shadow before reversing direction back to the upside. The ES then raced back to the R1 level and quickly broke through going into the noon lunch hour. The ES stayed above the R1 level for the rest of the session trading mostly sideways going into the closing bell. The high for the day printed at 1311.50 with the closing number printing at 1310.50.


YM Mini Dow Trading 1/19/12

The YM mini dow futures followed along with it's cousin the ES and gained the pivot point (12477) not long after Wednesday's close. The YM broke through the next level of resistance at the midpoint level (12516) during pre-market trading and moved all the way up to the R1 level. Once the cash market opened with the bell, the YM mini Dow pulled back briefly and revisited the midpoint level then quickly turned back to the upside. The YM however, attempted several times throughout the day to breakthrough and establish a base above R1 as can be seen on the YM intra-day chart below and never was successful until right at the end of cash market trading. As can be seen on the chart below, the YM futures having broken through the R1 level and are making an attempt on the next level of resistance going into overnight trading.



Economic Reports for Tomorrow

Existing Home Sales 10:00 AM EST

Economic reports can have a substantial impact on the markets.