Outlook 08/02

Context: Apple shares are up more than 6% premarket following a strong Q3 earnings report, and stock index futures are riding the positive earnings sentiment as well, with the Nasdaq almost up 1% and S&P 500 inching higher. Oil is flat at $49.16/bbl, gold is 0.5% lower at $1272/ounce and the 10-year Treasury yield is up 2 bps to 2.27%.

/ES Value: YVAH 2474 YPOC 2472 YVAL 2470

/ES Plan: Yesterday left a balanced profile and Globex continues on the same way. We're moving few ticks above Yesterday's value. Not much to say other that Today was same as Yesterday and Monday, we're stuck in this range 2480-2462 with value shifting higher, so primary intial idea is still buying weakness:

A) If market holds above yesterday value 2474-70, it is a clearly bullish signal, so try to be buyer and scale into the long side towards ONH 2476 and ATH 2480.50 If market shows 'one tick failure' at ONH or ATH, it's a signal of rejection, so try to sell failure. Cover at 2474-70.

B) If market begins to trade below Yesterday's value area 2470 and volume increases at lows, try to be a seller towards CLVN 2462.

Tips: Summer's weeks are tough because the history of prior days isn't that reliable due to the low volume of trading, so we can't expect too much swingers over this period, just scalping. We need volume to return, that could happen near NFP on Friday.

Today's Economic Calendar

09:45 AM ISM NY Index
10:30 AM EIA Oil Inventories
12:00 PM Fed's Mester
03:30 PM Fed's Williams

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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