11:52 am EDT:  All the leaders continue to be equities bearish, yet the ES progresses higher.  This divergence should be resolved by end of day or tomorrow at the latest; however, the longer the ES hovers around the daily R1′s from 1162.25 to 1163.00, the less we like shorts from this area.

The Precise Take – Equity futures extend gains overnight, but leaders at inflection points

Leaders Analysis:  The US Dollar finally reached 79.53 support overnight, the 38.2% retracement of its January to February rally, which also coincides with long term pivot and 50 day moving average support.  While it could eventually reach the 50% retracement at 78.97, it should bounce here first.  Similarly, the EuroYen and 30 Year T-Bond yields are at potential reversal levels, so the leaders are equities bearish today.

Medium Term Analysis:  Yesterday, the ES cleared critical resistance at 1152.75 and is up materially overnight, having reached precisely the March contract high of 1159.50.  This should pave the way for higher prices, however, not necessarily immediately.  Given the leaders’ stance, we expect to see at least a test of…

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