Pre-open eMini SP 500 Morning Report 2.3.10

This is a guest post from Precision Capital Management

The Precise Take – Equities recovered a bit yesterday, but now encountering strong resistance

Leaders Analysis:  The US Dollar Index sold off but subsequently bounced strongly overnight, the EuroYen has continued its advance, and 30 Year T-Bond futures are down marginally, but consolidating.  All in all, the leaders are equities neutral

Medium Term Analysis:  The ES had a bullish showing yesterday, but has advanced enough to get shorts interested.  It will need to clear 1109 to avert new lows.  Estimates for Friday’s Employment Situation are generally negative; however, the ES has a chance to rally on a consensus number.

Trading Today:  As we write, the ES is breaking down through strong support that includes the daily pivots, closing VWAP, and a long term high volume level, from 1093.50 to 1094.25.  Below that there is virtually no support to…

Read the full report: