its the First of the Month and it looks like some good data overnight combined with a weak euro has sent futures flying, were seeing green across the board this morning pre-market.
The ES has made a massive move from the low put in a triple bottom yesterday at 1176.50 last night. who ever made that large sell yesterday at the close was severely wrong in their timing. The ES is breaking through the R2 at the moment, the R3 lies at 1211. not too sure if it can make it there today but in the next two days it should tag that level. If i didnt already have a long position i wouldnt buy here, i would not short here either.... i'd look for a pullback mid morning to get a position.
the extreme EURO weakness has subsided for the time being, this is the major boast to the futures. moving a solid 150 pips off the lows last night. current broken through the R1, is should see the R2 level at 1.3225 in the next day or two. I wouldn't be looking to go Long right at the level, i would be waiting for a pullback to at least 1.3075
Gold saw some strength overnight but not as much as i would have though given the USD has fallen by almost 1%. it did hit my initial target of 1398, where it found some resistance. it should fall to around the 1385 level before seeing some buyers.