Pre-open eMini SP 500 Morning Report 6.10.10

This is a guest post from Precision Capital Management

The Precise Take – Same as yesterday: Equity futures up on Euro strength

Big Picture Analysis:  Yesterday, the ES failed precisely at its weekly pivot of 1077.75, with the Nasdaq 100 and Russell 2000 failing at their 200 day moving averages.  If these levels are not cleared soon, we would expect more downside.  If they are cleared, there could be a short covering rally.  To elaborate on a point made yesterday, days with strong closes have tended to be followed in the following days by weak closes.  In general, current conditions are favoring strong intraday reversals, so it is wise to tighten stops after large moves.  In addition, it has now been a month since the day session traded inside the night session, and it is now more common for the day session to take out both the overnight high and low.  All of this is characteristic of a market that is…

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