11:27 am EDT:  Though the daily S1′s at 1102.00 were taken out (actual low 1100.75), the ES has bounced back into the overnight range.  T-Bonds are down and the EuroYen continues to advance slowly, now having taken out yesterday’s high, so it looks like the swing equity longs are safe for the time being.  Jobless Claims tomorrow and options expiration on Friday will be market movers.  We’ll likely play the existing Globex range for the rest of the day.

The Precise Take – ES poised to move with CPI behind

Leaders Analysis:  The EuroYen reversed just above its 200 day moving average.  Not the clearest of reversals as it did not hit support exactly and today’s up candle has not yet taken out yesterday’s high; however, it is looking equities bullish for the time being.  30 Year T-Bonds and 10 Year T-Notes are both stalling at resistance.  If they reverse down here, the S&P 500 should be able to easily continue its upward rally into the end of the week.  If they break through, we likely have an interim top in equities.

Medium & Long Term Analysis:  To be updated intraday. 

Trading Today:  CPI was roughly in line with expectations and Housing Starts disappointed a bit.  However, the ES found support near the overnight low in confluence with yesterday’s point of control and closing VWAP (actual low 1105.25).  This support area of 1105.00 to 1105.50 is key for longs to hold early if new material gains are to be made.  With CPI behind now, there is a decent chance for a…

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