Pre-open eMini SP 500 Morning Report 6.3.10

This is a guest post from Precision Capital Management

The Precise Take – Equity futures attempt to retain gains ahead of Employment Situation Friday

Big Picture Analysis:  Yesterday’s late afternoon surge helped to produce a follow through day, and overnight the ES is trading in the area that was previously rejected on May 28.  With the 200 day moving average at 1104.50 today, and the 20 day just above at 1109.00, a close over 1109.00 should send the all clear and help initiate a rally.  Until then, the ES is in a short term vulnerable spot.  The consensus range for tomorrow’s monthly Employment Situation report is from 225,000 to 635,000, with the wide difference in opinions  largely based on the US Census hiring factor.  A consensus report should be supportive of equities while, non-intuitively, an above consensus report could weigh on equities because of a strong Dollar rally.  Next week features a light news calendar, and as long as the Club Med states continue to stay out of the spotlight, the markets should continue to accept risk.  If the ES heads down today or tomorrow, we want to see 1085.00 respected as…

Read the whole report here: