Pre-open eMini SP 500 Morning Report 2.8.10

This is a guest post from Precision Capital Management

The Precise Take – Markets quiet overnight ahead of slow news week

Leaders Analysis:  The US Dollar Index advanced above, but then closed below strong resistance Friday, and is down marginally overnight.  The inverse is true for the EuroYen as it usually trades in the opposite direction of the Dollar.  30 Year T-Bond futures closed over strong resistance and have backed off marginally overnight, with the yield finally breaking down below a long term trendline ahead of three large Note auctions this week.  It looks as though the uptrend in yields will confirm a  downward reversal on the first good auction this week.  Given the recent international turmoil, demand should be solid.  The leaders are the slightest bit equities bullish.

Medium Term Analysis:  This is a relatively quiet news week with no top tier reports scheduled.  Retail Sales on Thursday and Consumer Sentiment on Friday could move the markets a bit.  Accordingly, any political or sovereign news will probably provide the impetus for the next major move.  Barring that, today we expect range bound action.  Should the ES be able to mount a minor rally, 1080 to 1083 will be the first major resistance area. 

Trading Today:  The ES has oscillated overnight roughly between the weekly and daily pivots.  This range will probably be broken, but only nominally.  Accordingly, the upper end of the projected range includes…

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