Crude oil is back over $103 and Gold is seeing a bid, but US futures didn't see any inverse reaction until after the unemployment report. The ES saw an initial bid up to 1334.50 following the mediocre report, but then quickly sold off 7 points. ES is now trading underneath its overnight support.
In the news this morning there have been reports of intensifying fighting in Libya. Protests in Saudi Arabia demand the release of Shiite prisoners being held unjustly, and there was mention of a bombing at a Yemen anti-government protest.
I like shorting the up-ticks today as long as the the ES trades underneath 1333-1335 (EDIT AFTER INITIAL POST: I only like shorting the up-ticks if we get continued selling after the opening bell to indicate weakness). If volume dies off after the morning, selling may not have the chance to come in and markets could float back up. If selling does not come in today and we trade in a tight consolidation range, it will be a bullish sign for the markets looking forward.
Levels to watch today on the ES:
Resistance above at 1329-1330, 1334-1335, 1340, 1343
Support below at 1324-1325, 1317-1318, 1313-1314, 1304-1305
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Market just trading against crude... Oil reaches $104 as ES sells down to 1321
ReplyDeleteMorning Verde - Barring some fantastic news and I can't imagine what that would be, my studies show a flush down next week. We are still too overbought up here and we need more of a pullback than we got on Tuesday to reset things a bit. Once again, not looking for anything more than 1260 or so in March, if we even get there.
ReplyDeleteToday has fairly heavy vol at 1.2 mil now without a big pullback which leads me to believe that there is more distribution taking place today.
Check your monthly chart for more resistance levels and you'll see what I mean. In the meantime, quick scalps is the name of the game...
Vis
Vis, what monthly resistance levels are you referring to? If you have a chart marked up, feel free to send it over...
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