Oil has continued higher since making new highs on Friday. Gold and Silver also rallying as potential flights to safety amidst rising oil prices and global turmoil. Battles in Libya continue to rage between government forces and rebels suggesting that unrest in Middle East/North Africa (MENA) is far from over.
Surprisingly, US markets are not lower this morning after crude oil futures traded almost as high as $107 in the last hour.
My bias is to the short-side today and I expect to see the market make new lows soon. That being said, technical levels continue to show support underneath current market prices. The overall up-trend has not yet confirmed a break-down. For that reason, I can't be overly confident on the short-side just yet and will have to continue to trade what I see. For the short-side to play out, the ES needs to see another move below 1300 and if the lows (1293-1294 ES) are tested again, I don't expect them to hold.
I favor shorting the up-ticks into resistance as of now.
Levels to watch today on the ES:
Resistance above at: 1326-1327, 1333-1334
Support Below at: 1312-1314, 1304-1305, 1298-1299, 1293-1294, 1290, 1285-1286
Monday, March 7, 2011
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