Pre-open eMini SP 500 Morning Report 4.8.10
This is a guest post from Precision Capital Management
The Precise Take – Markets looking to consolidate yesterday’s move
Leaders Analysis: The EuroYen is down to strong fib and moving average support and the US Dollar Index is up to resistance. Both are potential inflection points, though the Dollar could go a bit further. After yesterday’s successful 10 year auction, long term yields backed down strongly from resistance, aided by the equities selloff. What we hypothesized, but were nearly ready to abandon a few days ago, was the idea that the consequences of a break through and spike in long term yields were too great and that they would top for now. For today, the leaders are slightly equities bullish, depending on the EuroYen and Dollar respecting their support/resistance levels.
Medium Term Analysis: Adding to yesterday afternoon’s comments, 1171.25 is also the weekly pivot and is the price level to watch. The green value area below, from 1181.50 to 1184.00 is now resistance, where the ES will need to…
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