Monday, 14 May 2012

Pre-Market Brief

Futures broke a new low in overnight trading, around -15, the equivalent of sp'1338/39 earlier, so...this is a pretty bearish open. Anyone who bravely went long near the Friday close is going to be pretty annoyed this morning.

If we are -15 by late morning, the outlook will look quite bad. However, there are some out there who were looking at this wave'2 as actually as minor'4 of 1' - in which case this would be a fifth lower..and soon a floor. Those same people then looking for new highs in June. I find that hard to agree with.


I'm not sure what I'm going to do now with this mornings open. I guess I'll sit out today, going long after breaking a new low is not a great idea, and chasing the market lower this morning seems equally stupid, at least until both the 15/60min cycles are at higher levels.

*I suppose we might not break a new low by the time the market opens in normal trading hours, but, I'd still consider the ES new low as important.
Good wishes for Monday..and the week ahead.

More across the day.