Outlook 08/01

Context: Apple's earnings come just as the tech sector has been looking a little weak in the knees, so its results could set the tone across markets, with investors positioning for the new month. The tech giant is expected to report a rise in third-quarter revenue, benefited by higher sales of smartphones, as well as strength in its services business. Details on the iPhone 8 and its release date are also anticipated.

/ES Value: YVAH 2470.50 YPOC 2468.50 YVAL 2467.50

/ES Plan: Yesterday left a bearish profile (PBT 2462). Globex is bullish (GBT 2480) and we're moving above Yesterday's value. Not much to say other that Today was same as Yesterday, so we've similar 2 options:

A) If market holds above YVAH 2470, it is a clearly bullish signal, so try to be buyer and scale into the long side towards ONH and GBT 2480. If the market begins to trade within Yesterday's value area and volume increases at lows, it would be recommended to exit long positions.

B) If market opens above YVAH 2470 but then fails to go through ONH (One Tick Failure) and begins to trade back with volume at lows increasing, it's a signal of rejection, so try to be a seller towards YVAL 2467 and PBT-CLVN 2462. Internals should be neutral or negative.

Tips: We're moving within a tight range and we are heading into August. It's not very clear and the danger is reading too much into the action. Market will be tricky till balance at top, breaks one way or the other. Try to jump on board only when imbalance becomes clear and volume at price shows decent peaks (HVNs). Volume at price is like going up or down a ladder, you just stand on your feet with confidence if you see and feel every step.

Today's Economic Calendar

08:30 AM Personal Income and Outlays
08:55 AM Redbook Chain Store Sales
09:45 AM PMI Manufacturing Index
10:00 AM ISM Manufacturing Index
10:00 AM Construction Spending
02:00 PM Gallup US ECI

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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