Pre-open eMini SP 500 Morning Report 6.18.10

This is a guest post from Precision Capital Management

The Precise Take – Markets quiet ahead of options expiration

Big Picture Analysis:  The ES appeared to be perched late yesterday for a closing swan dive, but managed the opposite, a bit reminiscent of the POMO tape paints of the early 2009 rally.  However, the ability to accept over the last three days above 1100 is important.  If the ES is to head higher, it would be normal to first probe below the lower end of the current value, just below 1100.  A rejection should launch an up leg.  Acceptance below 1100 would suggest a test of at least 1085.25.  It is also possible that an up leg ensues with no test of 1100.  We remain cautiously bullish as opposed to overtly because…

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