This is a guest post from Precision Capital Management
The Precise Take – ES challenging highs
Leaders Analysis: The EuroYen is down, having been unable to clear resistance since yesterday morning. The US Dollar Index is up, but it has been positively correlated with equities since yesterday morning. Notably, 30 Year T-Bond yields have gapped below support and should be able to move lower—a favorable development given the resumption of long term Treasury auctions next week. All in all, the leaders are slightly equities bearish.
Medium Term Analysis: Yesterday, the ES was able to accept above 1200 and rallied post-close on Apple earnings to 1209.50, then sold off to 1201.75. It should be able to make new nominal highs over the coming days, but will probably not gain momentum until all major resistance is cleared and 1215.75 is exceeded. Until that time, it is still vulnerable to unfavorable news, especially with respect to financial reform. Having said that, as long as…
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