Outlook 07/21

Context: Markets are turning their attention to Bitcoin prices that hit a high of $2,948.51 on Thursday evening, just shy of the record high $3,025.47 reached on June 11. It coincides with law enforcement agencies in the U.S. and Europe taking out two of the biggest "dark web" operations known to accept cryptocurrencies. Bitcoin backers are also celebrating the move to a new scaling platform, which could speed up transactions. The euro held near two-year highs against the dollar overnight after Mario Draghi said tapering of the ECB's stimulus will be on the table this fall.

/ES Value: VAH 2474.25 POC 2471.75 VAL 2470.75

/ES Plan: Yesterday closed bullish but printing new highs overnight and stats say overnight new highs have big chances to be tested at regular trading hours. Globex is balanced and we're moving within yesterday's value so we've 2 options:

A) If market holds above VAL 2470 we could see the re-test high towards ON ATH 2476 and YBT 2480, so try to be buyer and scale into a position on the long side off any step of the ladder.

B) If market fails at VAL 2470, expect some decent pullback towards YVAL 2464. If that fails, next references will be the edge 2461 and 2458.25 yesterday's gap.

/ES Update: Globex is bearish and we're moving below yesterday's value so plan B into play, towards YVAL 2464.50

Tip: Volume is one of the basis of the auction process. As the markets move higher or lower, eventually the buying and selling interest disappears. Markets go up until the last buyer has bought and down until the last seller has sold. Follow deceleration in market activity and divergence volume signals when it is time to take the trade. Use Delta (Bid/Ask) or Cash market internals (ADVSP/DECLSP/UVOLSP/DVOLSP).

Today's Economic Calendar

01:00 PM Baker-Hughes Rig Count

Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice. Full Disclaimer

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