Pre-open eMini SP 500 Morning Report 12.28.09

This is a guest post from Precision Capital Management

The Precise Take – ES to gap open on closing week of 2009

Leaders Analysis: Overnight, the leaders have continued moving nominally in the direction of last week’s trends.  Some are close to reversal points, but for now, they continue to confirm equities strength.  We are focused on the 30 Yr yield, which is testing June highs and the EuroYen forex cross, which is creeping towards its 50 and 200 day moving averages.

Medium Term Analysis: There are no scheduled news items this week that are expected to move the markets, though an extreme headline number would do so.  Next Monday begins with ISM Manufacturing, then focus will shift to Friday’s Employment Situation.  This week should feature more of the same low volatility intraday trading.

Trading Today:  Overnight the ES traded to 1125.00, just shy of day-session-only R2, which, in confluence with the 50% retracement of the Oct 07 high at 1126.25, forms the upper end of the projected range for today.  To the downside, the lower end is formed from…

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