Outlook 08/03

Context: The Dow Jones industrial average topped 22,000 in the previous session, with Boeing contributing much of the latest leg upward, and Apple providing the final push. It's been a record year! The benchmark has recorded three 1,000-point milestones in 2017. While earnings season contributed to the latest sentiment, Dow industrials are up 20% since Election Day. Can the S&P join the Dow record? The S&P is accumulating long positions for some time now and not really getting paid for it. Today or at least NFP Friday should be the '2500 day'.

/ES Value: YVAH 2475.50 YPOC 2473.50 YVAL 2467.50

/ES Plan: Yesterday left a bimodal profile with LVN 2470 as the 'Line in the Sand'. We're moving within Yesterday's range/value. Market continues to balance at highs and there is little to no indication of any strong sellers present, so primary idea is still buying weakness:

A) If market holds above yesterday LIS-YVAL 2470-67, it is a clearly bullish signal, so try to be buyer and scale into the long side towards ONH 2474 ATH 2480.50 and YBT 2483. If market shows 'one tick failure' at ONH or ATH, it's a signal of rejection, so try to sell failure.

B) If market begins to trade below YVAL 2467 and volume increases at lows, try to be a seller leaning on 2467-70 towards CLVN 2462.

Tips: Watching at the bigger picture, last All Time High (ATH) 2480.50 has a lack of decent excess on it. Usually, market needs an excess high that would indicate the end to the current auction. Excess means single prints at daily profile or a big tail on candlestick charts.

Today's Economic Calendar

09:45 AM Bloomberg Consumer Comfort Index
09:45 AM PMI Services Index
10:00 AM ISM Non-Manufacturing Index
10:00 AM Factory Orders
10:30 AM EIA Natural Gas Inventory
04:30 PM Money Supply
04:30 PM Fed Balance Sheet

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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