The Precise Take – Equity futures recover overnight as US Dollar backs off resistance

Leaders Analysis:  After yesterday’s surge upward, the US Dollar Index made a new nominal high at 82.06 overnight and has since retreated.  Gold is respecting long term trendline support and is up marginally, and the 30 Year T-Bond yield is backing off long term resistance.  Accordingly, the leaders are equities bullish for today.

Medium Term Analysis:  With yesterday’s currency and interest rate shocks, equities had a good excuse to sell off, but did not materially do so.  The largest high volume level for the June ES contract of 1161.00 was respected to the tick.  All of this suggests higher highs in the coming days.  Only a close today below 1161.00 today would make us a bit suspicious of the rally.  Today at 10:00 am, Bernanke will deliver the testimony that was previously snowed off the calendar and…

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