Pre Market TAO Tues 08-18-09

Overnight ES and NQ futures traded up to the pivot 1580 and 986 area. The US Dollar is at the daily pivot as well. I expect the QQQQ and Spy to gap up at the open and quickly sell down to yesterday low. If there is a break of the low, a move to 980 down to 960 is possible.

My plan is to wait for the gap up momentum to fade in the first 15 min's and then sell the rally.

Keep a close eye on the US Dollar. A sustained Dollar rally will cause the equity markets to continue to the down side.