Pre-open eMini SP 500 Morning Report 4.13.10

This is a guest post from Precision Capital Management

The Precise Take – Down and up for equities futures overnight

Leaders Analysis:  Though the US Dollar Index was just above strong support yesterday morning at 80.60, it sunk slightly below after the equities open and has stayed below most of the night.  Accordingly, it may not test its 20 day moving average above at 81.08 and could be preparing instead for a test of the March low with a target of 79.65.  A close above 80.60 would negate this, and tomorrow’s CPI will also be a big factor.  The EuroYen is down overnight and filled the weekend gap, which may or may not be important since it has very few historical material gaps.  What is important is for it to resume it’s upward trend in the next day or so to keep the bullish intermediate trend in tact; however, it may first need to head a bit lower to test its 20 day moving average at 124.75.  Long term yields continue to move down after last week’s near break of critical resistance, and again, tomorrow’s CPI will be a big influence on direction over the next week.  For today, the leaders are slightly equities bullish.

Medium Term Analysis:  Yesterday turned out to be very quiet, with a five point range in the ES.  With today’s news out of the way, it could be similarly slow again, with the caveat that this market has been subject to sudden bursts of enthusiasm, so it’s prudent not to…

Read the full report: