The Precise Take – ES awakes from news siesta

Leaders Analysis:  30 Year T-Bonds pushed against the upper end of the downward sloping trend channel yesterday, but were unable to push through.  We would still take a break of this resistance as a hindrance to the equities rally, but it has not yet happened.  Conversely, a fall through support should lift equities.  The EuroYen has been in an unusually tight range, and its breakout will likely happen in concert with T-Bonds.  Gold continues to edge higher, and the US Dollar is having its strongest day this month.  All in all, slightly equities bearish, but we will watch closely for signs of any reversal.

Trading Today:  We prefer to be early sellers in the range that includes yesterday’s settlement (1096.25), the daily pivots, closing VWAP and weekly R2 (1097.50), but we will allow a break above the overnight high of 1098.25 by one point to allow for a possible bull trap.  Above 1099.00, we don’t wish to be…

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