The Precise Take – ES consolidating at resistance

Leaders Analysis:   As we updated yesterday (free registration), gold’s strength has been confirmed in other currencies, including the CAD and AUD, despite the Australian central bank’s tightening announcement yesterday.  We are still seeing Yen strength, with the USDYen and EuroYen in danger of breaching strong support.  For equities to continue the rally, we would like to see a definitive move away from support in the Yen crosses.  Perhaps the global risk/carry trade is being delevered from the Yen and primarily into the USD, but we see no inherent strength in the Yen or BOJ tightening ahead that would cause this.

Trading Today:  Yesterday’s rally traded into last week’s market profile value area and sold off sharply, only to see an impressive late day rally to recover much of the early gains.  We would be buyers down to the combined session pivot at 1047.00.  There is still the risk of selloff, so we would…

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