Pre-open eMini SP 500 Morning Report 5.18.10

This is a guest post from Precision Capital Management

The Precise Take – Markets dabbling in risk

Big Picture Analysis:  After a rocky start yesterday, equities managed to close strong and head higher overnight.  The ES went from weekly S1 yesterday to its weekly pivot overnight.  From a market profile perspective, the ES is building a base of volume from about 1113 to 1139 (deep purple rectangle, below), but it is not yet as large as the one above, from 1145 to 1175.  This means, sellers are still in control and the first venture of price into this area is likely to get beaten back strongly.  At that point, either the top of the purple value area at 1139.00 or its highest volume level at 1126.00 should hold as support within a point as a signal that bulls are willing to spend the money to gain control.  If 1126.00 does not hold, the ES should chop around more building a base or, potentially…

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