Squawk Evening Update: More S&P Brinksmanship

Our recap will be short and sweet this evening.  The Dow rising right into an anticipated target area means that we don’t need to do too much discussion other than to note that the rise doesn’t necessarily count out to a perfect five, nor is the subsequent decline unambiguous.  The same rise in the S&P 500 took it to within two points of the important level we cited this morning.  It may be possible to count the rise either index as an ending diagonal.  As we prepare for tomorrow’s briefing, we’ll look at the various possibilities and what it means for expectations for the trading day ahead.

The Euro had an extremely strong day and we’ll take a closer look at that move also.  In addition to the short-term moves we have been watching, we have a wider range of medium term scenarios that have been competing to see which will accurately describe future moves in the currency.  Today’s move broke above August 18th swing highs and, therefore, reduces the number of scenarios that can plausibly apply.  We’ll dig into whatever insights we can tease out of the short-term moves as well as review the implications to the longer-term view.

U.S. equity market futures showed weakness after the close.  Just about anything can happen overnight, so we’ll wait until we’ve finished all our analysis and incorporated overnight action into our outlook to provide our comprehensive briefing in the morning.