Pre-open eMini SP 500 Morning Report 3.12.10

This is a guest post from Precision Capital Management

The Precise Take – Equity futures spike higher on Retail Sales

Leaders Analysis:  The US Dollar Index broke down through its consolidating wedge and has reached support.  While we expect it to go lower next week, there is a good chance it will retrace upwards a bit first.  The EuroYen has traded up to its 20 day moving average and 30 Year T-Bond yields are up after going down on yesterday’s 30 year auction and hitting support.  Because of the extended moves into support/resistance and possibility of reversal, for today, the leaders are slightly equities bearish.

Medium Term Analysis:  As of Monday, we will switch to the June 2010 contract.  Yesterday’s afternoon rally finally produced the breakout from the January high, which was continued overnight and extended on the Retail Sales report.  The spike up on the report into strong resistance and subsequent retracement is a bit bearish, and given the overbought status of the ES, we would not be surprised to see…

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