This is a guest post from Precision Capital Management
The Precise Take – Equity futures gap and fill overnight, heading into opex week
Leaders Analysis: Off bullish Eurozone news, there is a rare material gap on the daily charts for many of the currency pairs. The US Dollar Index opened below major support and rallied up through it. There are a few more former support (and now resistance) levels it could rally into over the next day, the last of which is its 20 day moving average, currently at 81.04. This by itself is slightly equities bearish; however, without any clear signals from the other leaders, we’re inclined not to put too much weight in them today.
Medium Term Analysis: We’re heading into options expiration week with some big reports due Wednesday from Retail Sales and CPI. We would be inclined to say that things should be quiet until then, but the day session range of the ES has been increasing, even on low news event days. The ES has been respecting high volume zones, so longs will want to defend…
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