The was an interesting note in Bloomberg news this morning about the correlation between the S&P 500 and the 10s. Over the last 60 days, the correlation has been 0.84 which is the highest correlation in their historical data set back to 1962. This high correlation shows that traders are ignoring relative values and are reacting day-to-day based on economic information. This correlation gives a statistical reason to why we look at the 10s each day. Currently, the 10s reacted to the personal income news positively while the Euro is trending down off it’s Friday highs. The European markets had their first rally in 5 days and the Asian markets are flat. The ES is currently mixed, very close to Friday’s close at the time of this writing. There are little directional clues. The big question for this morning is whether or not there is enough interest to move the ES far enough to create trading opportunities. Volume has been fairly light and there is no real news to change trader expectations. I expect the OL and OH to be tested sometime today. Both should provide trading opportunites with proper order flow. There is a lot of overhead resistance above the OH which should provide shorting opportunities. Below the OL will be a little more difficult to trade until price gets near Friday’s lows.