Markets: Your Must-Read Morning Report 6.22.10

The exclusive Markets Morning Report is supplied by Precision Capital Management.

The Precise Take – ES at support ahead of FOMC day

Big Picture Analysis:  Yesterday was a bit disappointing for the bulls as there was a clear rejection of the 50% retracement of the May down leg.  However, the ES has respected trendline support and continues to accept in its largest value area (blue, below).  Any probe below 1102.00 should be quickly rejected to confirm equities strength.  Acceptance below suggests sideways to down action.  A review of prior occurrences of days that gapped open above daily R3 (such as the ES did yesterday) reveals that more often than not, the ES consolidates for a week or two before its next move (with no particular directional bias as to the resulting move).  What could help equities in the short term is…

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