Overnight levels and thoughts

Futures are signaling a higher open on early unconfirmed reports that Russia’s President Putin has ordered troops to end military exercises. Putin is expected to address his nation and hold a press conference in about 30 minutes. Futures will be pretty active throughout the night.

Currently, the $ES_F E Mini S&P Futures stand at 1855.00 +12.00.

On news, not coincidentally, the overnight high was exactly 1860.25. This high, as shown in the chart below, fills the gap down from overnight session on Sunday Night/Monday morning. Watch this level as key resistance overnight and into tomorrow’s sessions. A break above that level would put the $ES_F all time high of 1866.5 as near term resistance.

Screen Shot 2014-03-04 at 2.51.52 AM

Yesterday’s low of the day 1832.25 will remains a critical short term level of support for the $ES_F.

Tomorrow should be interesting. I trimmed some fat today and took one new position. Overall I remain about 50 percent in cash. I am cautious but neutral until I see more price action. One day does not make a trend and in most markets, price anticipates economical/political risk. The exception being the situations where events were not easily foreseeable. In those cases, markets become a little more news driven. With the action overnight, you can see headlines are having a little bit more of an increased impact on the tape.

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