Pre-open eMini SP 500 Morning Report 5.3.10

This is a guest post from Precision Capital Management

The Precise Take – ES up marginally ahead of ISM

Leaders Analysis:  The US Dollar Index first up strongly overnight, but has backed off a bit.  Next upside target is 82.66, close to last week’s high.  If the rally is to resume this week, the new monthly pivot at 81.54 should act as support.  The EuroYen was down but has bounced off support and has a bit farther until it reaches resistance.  Accordingly, the leaders are slightly equities bullish for today.

Medium Term Analysis:  The frenetic day by day reversals with an expanding range is reminiscent of prior tops in the 2009 rally, especially, the mid January top.  Things rarely play out exactly as before, but swing longs should be on alert for a reversal.  Having said that, there is some bullish seasonality today and tomorrow, so a bounce is possible first.  1200 to 1203.50 is strong resistance.  After today, there is no…

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