Pre-market Tour (recording & summary)
The ECB statement was greeted at 2239.00 (basis Dec, 2233.75 basis Mar). The immediate reaction to potential future tapering was a 6-point plunge. Its less immediate reaction bounced back up to the plunge’s origin, and through it to pierce the overnight highs by 2 ticks. Price settled back ahead of Draghi’s prepared remarks which retested yesterday’s high, and the Q&A which has held up at the highs.
Regardless of not gaining traction, some intraday follow-through to yesterday’s rally is likely, whether today or tomorrow. Holding a test of either upside objective and reacting down to close back under 2220.00 (basis Dec, 2214.75 basis Mar) would negate the next higher objective. The trend would all but reverse down if either next higher objective (2244.75 or 2252.50 basis Dec, 2239.50 or 2247.25 basis Mar) had been tested already.
The front-month rolls forward at the open from Dec 16 to Mar 17. I’m continuing with Dec this morning as it’s the only contract to have traded in this area as a front-month. This handy-dandy reference table identifies recently relevant levels until this afternoon:
| Item | Dec | Mar |
| bias-up signal | 2240.00 | 2234.75 |
| bias-up target | 2245.50 | 2240.25 |
| bias-down signal | 2232.25 | 2227.00 |
| bias-down target | 2227.00 | 2221.75 |
| next objective | 2244.75 | 2239.50 |
| higher objective | 2252.50 | 2247.25 |
| objective rejection | 2220.00 | 2114.75 |
Details and other markets coverage are discussed in the pre-market Tour recording here.