Pre-open eMini SP 500 Morning Report 2.23.10

This is a guest post from Precision Capital Management

The Precise Take – Equity futures down overnight on Euro zone weakness

Leaders Analysis:  The EuroYen closed below its 20 day moving average yesterday, after closing above it Friday, and it is down again overnight.  The US Dollar Index is net up from yesterday’s close after hitting fib support overnight.  30 Year T-Bond futures are not saying much as they are forming a consolidating wedge.  All in all, the leaders are equities bearish.

Medium Term Analysis:  Yesterday, equity longs were not able to capitalize on a favorable gap up, with the ES trading below yesterday’s low overnight.  Our guess is equities will correct a bit before attempting to continue the rally.  In the ES, 1094 to 1097 is strong support, containing a long term high volume level, along with the monthly and weekly pivots.  If that cannot hold, there is long term pivot, moving average and fib support from 1082 to 1085.  Yesterday San Francisco FRB President Yellen spoke and attempted to allay fears that the Fed would…

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