Markets: Your Must-Read Morning Report 6.29.10

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

The Precise Take – Markets broadcast risk aversion overnight

Big Picture Analysis:  The markets were relatively quiet yesterday, but once the consolidation structures broke overnight, there was significant follow through on no particularly significant news.  The last holdout in the ES is marked below in magenta, from 1048.00 to 1049.00 (it is price structure based, not volume based).  However, the odds are favoring an eventual break to new lows, the first target being the 1013.50 to 1017.00 support level.  A close above 1073.50, while unlikely, would suggest the overnight action was just a shakeout.

Leaders Analysis:  The 30 Year Treasury yield opened below 4.0% and the 10 Year below 3.0% this morning.  Correspondingly, the US Dollar is up, most notably against the commodity currencies of Australia and Canada, and is only weaker against the Yen—all deflationary signs.  The EuroYen broke 109.50 support and took out the June 108.06 low.  The level to watch over the coming days is 107.50 which, if taken out, could trigger another…

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