Pre-open eMini SP 500 Morning Report 6.7.10

This is a guest post from Precision Capital Management

The Precise Take – Markets consolidating after disappointing G20 meeting

Big Picture Analysis:  Friday probably killed any prospects for a meaningful rally, and the ES could chop around now as it attempts to forge a range.  For now, this range appears to be about 1050 to 1100.  The markets continue to be vulnerable to bad news, and as there is likely to be more, the eventual break of this range should be to the downside. 

Leaders Analysis:  As we updated Friday, the US Dollar Index broke through critical resistance, and overnight has continued the up move.  88.98 is the next major upside target (basis cash), but there could be follow through up to the 91.50 area.  Long term Treasury yields are up marginally after Friday’s large down move, and the EuroYen made a new 52 week low, but has recovered to Friday’s close.  As long as 88.35 holds as resistance in the US Dollar Index, the leaders are…

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