Pre-open eMini SP 500 Morning Report 4.30.10

This is a guest post from Precision Capital Management

The Precise Take – Markets quiet after consensus GDP

Leaders Analysis:  The US Dollar Index and equities are both down slightly from the overnight highs on a consensus GDP.  The EuroYen has rallied into resistance.  No clear equities bias from the leaders today.

Medium Term Analysis:  Yesterday met all of the qualifications and then some to suggest that the worst is behind.  It’s important to be on alert for what can go wrong for the bulls, however.  The range has expanded each of the last two weeks to form another broadening megaphone pattern, with a larger range than the one that formed mid-January.  This suggests two things.  The true breakout area is about ~1220 in the ES, not the 1216.75 current contract high, and another violent move to the downside prior to clearing 1220 will probably get more follow through and signal a correction.  Unless and until that happens, we are bullish over the next…

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