(8:21 ET): The overnight range on the ES extended from 1068-1074. A very narrow range and completely within yesterday’s range of 1067-1077. With this in mind, on the bottom end I would be watching a breach of 1067 and on the top end I’ll keep my eye on the 1077 area (either for shorting or breakout opportunity) if 1074 is taken out. For me, I like the idea of getting short near yesterday’s high. I think the risk of an upside breakout over the Lehman gap is pretty low until earnings numbers and economic data come out tonight and tomorrow. I’m currently net long so it gives me a nice entry on the short side and can hedge up my portfolio before all the market moving data comes out.
JNJ reported earnings this morning. A large company but it isn’t an economic barometer like a CSX or Intel (after the bell today). JNJ is down 1.5% in the pre-market but I wouldn’t expect their numbers to move the market.
None of the pre-market movers are catching my eye right now.