Pre-market thoughts - Wednesday 18th May

Futures have pulled back steadily since the early morning and now only have small up gaps to show for it. Price levels to watch would be the globex lows which are 1324.75 on the ES and 819 on the TF. I have a very strong feeling that we will fill this mornings gap and probe these levels to see if they hold. At the moment, I'd likely say that they won't hold as I continue to see the USD rise against all the major currencies. Gold and oil are trading near the bottom of the range but aren't doing as badly as you would expect with such a pop in the USD so fundamentally that is an ok sign. I will most likely wait for the open and wait for the market structure to develop before putting on any trades today.