This is a guest post from Precision Capital Management
The Precise Take – Equity futures attempting to hold lows
Big Picture Analysis: The ES is still hugging the lower end of its ~1050 to ~1100 range, so we would not be surprised to see a move to test at least 1080-85 in the next couple of days. However, as has been the case recently, international news can quickly erase the prospects of any rally, and we will watch yesterday’s low of 1047.00 in the ES closely. If it breaks, the recent 1036.75 is not likely to hold and a move down to the next downside target area of 1016 to 1018 would be expected.
Leaders Analysis: The US Dollar Index has stalled a bit in its ascent, but this is characteristic when it breaks to new highs. The rally should resume later in the week, but there could be some short term weakness, including a test of the 87.46 breakout level. The EuroYen is inside yesterday’s already small range, as is the 30 Year Treasury yield. Accordingly, the leaders are poised for a short term move and the Dollar is hinting…
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