Corporate earnings continue to beat expectations with Microsoft posting a record revenue, McDonald’s and Verizon beating estimates this morning, and Ford said sales has jumped 15%. According to Bloomberg, nearly 85% of the companies reporting in the last two weeks have beaten their earnings estimates. The Asian markets were strong overnight with the Nikkei leading the bunch at 2.28%. European markets are also mostly up with the FTSE as the notable exception. The Euro is still trending up pulling the carry trade with it. The 10s are getting pounded down, already approaching its S2 pivot. Usually the ES inversely mirrors the 10s, but that is not the case this morning. The ES has moved up overnight, but has not broken to new highs the way the 10s have broken into new lows. So we have a bit of divergence between the ES and the 10s. Overall the bias is up. We have no scheduled news reports this morning to add volatility. The ES is approaching the strong long-term resistance around 1100, however right now its right in the middle of the daily comp super volume cluster centered around 1093. Resistance levels above the OH are well defined up to 1100. Below the OL is a nightmare for defining support levels. There’s a huge LVN area from 79 to 86 created by yesterday’s 10am news. I’ve sub-divided the area into 3 chunks, but they are really one whole support area and any trading in there will riskier than normal.