Pre-open eMini SP 500 Morning Report 3.29.10

This is a guest post from Precision Capital Management

The Precise Take – Equity futures to gap up marginally as Q1 2010 draws to a close

Leaders Analysis:  After closing lower Friday, the US Dollar Index sold off further overnight and entered its previous trading range, the upper end of which is serving as support.  It is still premature to confirm a false breakout, but so far that appears to be the case.  The EuroYen traded up through its 50 day moving average to the neckline of an inverse head and shoulders.  Should it close above, it would signal further equities gains in the coming weeks.  A potential blight is the 30 Year T-Bond yield, which stubbornly refuses to back away from long term resistance.  A break would generate significant follow through, which may spook the markets.  For today, the leaders are equities neutral.

Medium Term Analysis:  After a brief breach of the lower end of its current market profile value area (blue, below) Friday afternoon, the ES managed to close above its high volume level and continued to rally overnight.  Equities need to move higher soon or risk a profit taking drop, which needn’t be protracted in terms of time, but could be in terms of price, likely to at least the 1148 to 1150 level.  End of quarter is Wednesday, when focus will shift to…

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