Outlook 07/28

Context: One of the most important economic releases for July will be published this morning. Traders will be watching the preliminary estimate of second quarter GDP, which will indicate how well the economy bounced back from a lackluster 1.4% revised growth rate in Q1. The market is looking particularly for a pickup in consumer spending, the results will be vital to the Fed policy going forward.

/ES Value: YVAH 2480 YPOC 2478 YVAL 2466

/ES Plan: Yesterday closed leaving a multimodal thinner profile. We're moving in range, just a few ticks below yesterday's value. Globex shows a bearish profile (GBT 2459), so we've 2 options:

A) If market fails pushing above YVAL 2466 area, try to be seller and scale into the short side towards CLVN 2462, GBT 2459 and CLVN 2453.

B) If market pushes and holds above YVAL 2466 area, try to be buyer and scale into the long side towards ONH 2472, LVN 2473 and POC 2478.

Tips: /ES market often moves in 10-handle increments (10H) Ten-handle moves also tend to be “inflection levels”, where exhaustion takes place on the first test, at least briefly. The number of times the 10-handle increments play out depends on the market volatility, but with each 10-handle move, there tends to be a short-term high or low made. Watch this to work in both, upside or downside action.

Today's Economic Calendar

08:30 AM GDP Q2
08:30 AM Employment Cost Index
10:00 AM Consumer Sentiment
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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