The Precise Take – Equities back to June highs

Big Picture Analysis:  The ES has now rallied into the June high area, with another impressive performance yesterday.  Signs of institutional support are abundant, which should allow this 1125-30 resistance level to be cleared.  On any pullback, the 200 day moving average at 1112 should provide support.

Leaders Analysis:  The US Dollar Index broke through another major support level overnight, this time its 200 day moving average, as the Euro continues to perform well against most other currencies.  10 Year Treasury futures shot up to new highs overnight, with the yield (inverse to price) testing the 2.90% support level, though it has now retraced a bit.  Equities and Treasurys have rallied in tandem before, but the positive correlation tends to be fleeting.  Also, the spread between the 10 and 30 Year yields has now reached 112 bps, a record that…

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