Pre-open eMini SP 500 Morning Report 1.14.10

This is a guest post from Precision Capital Management

The Precise Take – ES flat on Retail Sales ahead of CPI and opex Friday

Leaders Analysis:   30 Year T-Bond futures have not been able to capitalize on Tuesday’s breakout, but have a good chance to rally on a tepid to cold CPI tomorrow.  Also, the 30 Year auction is today, but the auctions this week haven’t been producing much volatility.  The EuroYen is rangebound and not offering much guidance, and the US Dollar is up marginally from yesterday.  All in all, the leaders are equities neutral.

Medium Term Analysis:  Not much to add from yesterday’s commentary, except that the ES had its biggest day-session range since December 4 and intraday volatility is returning as expected. 

Trading Today:  As we write, retail sales for December came in below expectations and jobless claims came in at the upper end of expectations, which should both be bearish for equities.  However, the ES has barely budged, so the bulls appear to remain in control.  If the ES can break above yesterday’s high of 1145.25, there is a good chance of hitting…

Read the full report:

http://www.precisioncapmgt.com/wp-content/uploads/Precision_Report_January_14_10.pdf