Pre-open eMini SP 500 Morning Report 4.20.10

This is a guest post from Precision Capital Management

The Precise Take – Overnight, equity futures continue yesterday’s late day rally

Leaders Analysis:  The EuroYen rose steadily yesterday and continued the rally overnight, reaching its first resistance level.  The US Dollar was down marginally yesterday, and again overnight into minor support.  No clear signals, so the leaders are equities neutral.

Medium Term Analysis:  Friday’s selloff on the GS news smelled like a shakeout, but on the break of Friday’s low yesterday, it looked like we might be in for a more substantial correction.  However, the news late in the afternoon relegated the event to political theatre and allowed a large cap rebound that led the ES to a close above major resistance.  One potential negative is that market breadth did not rebound as sharply yesterday.  Accordingly, with the ES set to gap open near Friday’s opening range of 1200 to 1206, we’ll need to watch price action there to see if the February rally still…

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