The Precise Take – ES longs taking profits after an extended move

Leaders Analysis:   After an extended move down, 30 Year T-Bond futures have settled at VWAP anchored from the Jun 11 09 low.  Gold is down to 1048 after its high of 1072 was reached yesterday.  The US Dollar is up marginally, and only the EuroYen is broadcasting a strong preference for risk.  However, it looks like it is merely catching up as it was stuck at its 50 day moving average yesterday.  All in all, we would not be surprised to see a consolidation/correction into at least tomorrow.

Trading Today:  Building on the leaders analysis, the ES has now rejected monthly R1 yesterday and overnight, and we will watch to see where traders find value next.  As we write, the ES has traded down to day-session-only S1 and has found support there into the 8:30 am CPI and Jobless Claims reports.  We will be cautious sellers as long as price trades below…

Continue reading here.