Pre-open eMini SP 500 Morning Report 4.14.10

This is a guest post from Precision Capital Management

The Precise Take – Equity futures break to new highs on CPI and Retail Sales

Leaders Analysis:  The EuroYen is back up to its April 5 high, and the US Dollar is marginally down, still under major resistance.  Both should be able to continue in their respective directions, but with the EuroYen not having cleared resistance yet, the leaders are only slightly equities bullish today.

Medium Term Analysis:  The two major reports this morning were in line with expectations, which is to say CPI was flat measured month to month.  It seems the only thing that could kill this rally is expectations of Fed tightening, which have been quelled for now.  Focus now shifts to Friday’s options expiration and Q1 2010 financial reporting.  Next week’s news calendar is light and by the following week, we will have gone half a month with no large Treasury auctions.  If the rally continues into that week…

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