US Futures gapping up this morning as buying continues following Friday's gains. Price of oil continues to pull-back despite no improvement in the Libya situation. Tension in the Middle East/North Africa (MENA) is only increasing as anti-government protests have now spread to Oman. Seems that fear over the price of oil has been contained on the reassurance by Saudi Arabia to replace any lost production. Can't ignore current strength as markets continue to rebound throughout the world.
Though it is easy to believe the markets are going to continue their customary path (of late) to make new highs, I am not yet convinced that is the case. We still need to see the ES break above the 1330-1331 resistance before knowing that the highs can even be re-tested, and even if that happens, I wouldn't be surprised to see some volatile action that moves price on the ES up and down through the 1300 to 1340 would-be range before breaking up to new highs or down to new lows.
I am tentatively bullish today, though I like shorts at 1329-1331 (ES).
Levels to watch today on the ES:
Resistance above at: 1326-1327, 1330-1331
Support below at: 1319-1320, 1312-1313, 1304-1305
Monday, February 28, 2011
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