Markets: Your Must-Read Morning Report 7.1.10

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

The Precise Take – Markets continue risk aversion ahead of Employment Situation

Big Picture Analysis:  Yesterday, the ES was not able to hold the ~1030-32 famed head and shoulders neck line, and a late afternoon selloff was followed by further weakness overnight, hitting roughly the next downward target area of the early October 2009 lows.  While we should still be on alert for an oversold short covering bounce, especially considering tomorrow’s Employment Situation, the chance of another large panic selloff has increased.  Unfortunately, this makes both new swing shorts and swing longs risky from current levels. 

Leaders Analysis:  The EuroYen is holding support, primarily on unusual Euro strength, as the Yen is stronger against most other currencies.  Accordingly…

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