Pre-open eMini SP 500 Morning Report 6.16.10

This is a guest post from Precision Capital Management

The Precise Take – Markets looking to consolidate gains ahead of CPI and Opex

Big Picture Analysis:  After yesterday’s breakout and close over several important resistance levels, we would expect a consolidation day.  The ES has retraced overnight and hit the 1000.00 level on a disappointing Housing Starts report.  Upcoming major news items are CPI tomorrow, existing home sales Tuesday and an FOMC announcement Wednesday.  Given the bullish bias of FOMC day, things could look shaky until then.  As we’ve been writing, the risk markets need to show they can discount bad news (or accept outright good news) to head higher.  Also, there will be some tactical positioning ahead of Friday’s option expiration.  As long as the 1075-78 support level holds on a closing basis, prospects for…

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