12 Jan
Pre-open eMini S&P 500 Morning Report for January 12, 2010
Posted in Pre-open Analysis by Bob English at 9:52:51 5 CommentsThe Precise Take – Equities losing momentum overnight
Leaders Analysis: The EuroYen forex cross has strongly rejected the ~134.5 resistance area as it has traded down to moving average support overnight. The US Dollar has struggled to make a corresponding up move, though it is respecting support. 30 Year T-Bond futures are at the upper end of a trading range and have broken out of the downwards trend channel only by moving sideways. However, if they can close above 116’5, they have a chance to move to at least 118 to 118’16. Long term Treasury auctions over the next three days can provide volatility. All in all, the leaders have turned from equities bullish yesterday to slightly equities bearish today.
Medium Term Analysis: Equities have lost some momentum during the light news period that extends into tomorrow. Given the leaders stance, sideways to downside action is more likely until we get a bullish catalyst. Retails Sales Thursday and CPI Friday have a chance to provide this, but they could also just as easily be bearish.
Trading Today: The ES is down just over 10 points overnight, the weakest overnight performance since Dec 17 09. After an extended move up, the day session that follows this pattern usually has a nominal new low with a high at or below the day’s value area. The ES has traded to just above strong pivot confluence from the weekly pivot at 1132.25, monthly R1 at 1132.75, and daily S2 at 1133.25. We will consider a long from this area, but will wait…
Pre-open eMini SP 500 Morning Report 1.12.10 | Wall St. Cheat Sheet
on January 12 2010 at 09:54:57
[...] This is a guest post from Precision Capital Management [...]
sdg
on January 12 2010 at 11:36:10
Bob your support resistance chart is priceless. Is there any way you could label the green horizontal lines as d-r1, w-pp etc so it becomes easy to follow the chart. Thanks.
Bob English
on January 12 2010 at 11:45:50
We’re going to redesign the Report over the next few weeks and will be soliciting user comments. Labels as you request are a possibility. However, we don’t want to make the chart too cluttered.
Jeff
on January 12 2010 at 16:45:47
Bob,
I absolutely agree with sdg. Your daily discussions and charts are invaluable to me. I consider your website a mandatory read each morning.
I also agree some more labeling would be great on your charts. Clutter wouldn’t offend me… the more info, the better. In addition to what sdg mentioned, my humble suggestion is a more precise scale on the right side, perhaps down to the point rather than every 5 points.
Thanks for your consideration and for all the effort you put into your work.
Jeff
Bob English
on January 12 2010 at 17:44:03
@Jeff: Noted. The axis suggestion is easy to implement and will appear tomorrow with a very light grid, which will make finding the levels’ prices much easier.