Markets: Your Must-Read Morning Report 7.7.10

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

Big Picture Analysis:  Yesterday, the ES rejected its next higher (purple) value area, though early, it lingered in it a bit longer than we would have liked to constitute a clear rejection.  The daily pattern it formed, namely a gap to the upside that was followed by a steady decent after the first hour or two, has been relatively common over the last two months, being present at both interim tops and bottoms.  Typically, there will be follow through the following day (such as today) that determines the next move.  Also, on the day session chart, a triangular wedge is in play that begins on June 30.  Below, on the combined session chart, yesterday’s overnight low is ignored to reveal this pattern.  Accordingly, a break should initiate a…Read the whole report here: