Pre-open eMini SP 500 Morning Report 1.27.10

This is a guest post from Precision Capital Management

The Precise Take – Equities trying to maintain ahead of FOMC Announcement

Leaders Analysis:  The leaders are flat overnight, with the US Dollar still at critical resistance. 

Medium Term Analysis:  Uncertainty still looms regarding the Bernanke vote and to what extent banks will be affected by the new Volcker proposals.  With GDP on Friday, we expect volatility and a resolution of the fate of this correction. 

Trading Today:  On the morning of an FOMC Announcement day, the ES would typically be up by five points or more from the prior close; however, the ES has not been able to muster a move through closing VWAP at 1092.50.  If the seasonality holds, we should see a bullish day until after the Announcement, with downward move beginning anywhere from 2:30 pm to 3:00 pm.  As noted above, however, the day is…

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