Markets strong to open up today's session.
1) Initial Jobless claims reported at 368,000 versus consensus estimates of 395,000. Continuing claims also fell to 3.77 million from 3.83 million.
2) Oil is lower following news that Hugo Chavez has proposed a plan that would resolve the conflict between Libya's Gaddafi and the anti-government forces. The plan, involving a commission from Latin America, Europe and the Middle East is questionable, but the sell-off in crude cannot be argued.
Even with the bullish sentiment, my bias is neutral at the moment. The upward price action doesn't seem much more than noise to me. If buying continues after the opening bell, I don't think the ES will trade higher than 1326-1327 today. But more importantly, in terms of recent market weakness, I will be watching to see if the overnight momentum is rejected in the early going. I want to see if market participants view this move up as a selling opportunity. A gap fill will provide confidence that the market remains weak.
Levels to watch on the ES today:
Resistance above at 1321-1322, 1326-1327
Support below at 1313-1314, 1307-1308, 1302-1303
Thursday, March 3, 2011
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