Events this weekend have initiated a worldwide risk off scenario ahead of the US markets open. That’s the ‘silver lining’ as the US markets have an uncanny ability to ‘smooth’ things over . We will know if the jitters turn to panic by watching the Shadowlist and not what occurs in the ES/SPY . At the time of the Egyptian sell off, DJIM noted the probability to snapback quickly due to it being mostly ES linked sell off. This time we are dealing with tensions hitting the first ‘oil’ producing country and so it might be a little different this time due to 'inflation' links.
Investors have been waiting for an oppy’ to enter or re-enter at lower prices, but the expectation of this occurring on the initial gap down might be a little premature. This investor likes to wait for things to settle down some before buying and so unless things change drastically intraday they will likely wait a full trading or two.
Simply, overnight ES/SPY and certain other ETF’s do not signal the real market tone lately, it’s underlying individual stocks that will paint a clearer / bigger of the goings on.