Outlook 08/08

Context: It's a quiet day for US stock index futures after the DJIA hit a ninth consecutive record high in yesterday's session, while the SP500 cannot set a new all-time high. Sentiment is being attributed to the positive afterglow from Friday's jobs report, volatility at the lowest level in decades, as well as earnings season. Ralph Lauren, CVS, Disney and Priceline are all set to report.

/ES Value: YVAH 2478 YPOC 2477.50 YVAL 2474

/ES Plan: Yesterday left a bullish profile (PBT 2482). Overnight profile is balanced, moving within Yesterday's range/value. Market continues to balance at highs within 2480-2462, and there is little to no indication of any strong move. Typical summer time action. Look out for volume dropping more next days, so primary idea is wait for any test outside yesterday range 2478-2472.

A) If market shows 'one tick failure' at 2478/2472, it's a signal of rejection, so try to sell/buy the failure. Internals should be neutral.

B) If market begins to trade outside 2478/2472 and volume increases sharply, try to lean on that edges towards extremes 2482 or 2462.

Tips: Well, it’s that time of year when the markets start to slow down and we get a lot of small trading ranges. Use these days to learn and practice. Markets offer slow action so you can 'read' order flow more easily. Watch bid/ask at DOM and follow players reaction leaning on rejection levels (LVNs). Since you are naturally less active during summer days, why not use that time to build your trading skill set?

Today's Economic Calendar

08:55 AM Redbook Chain Store Sales
10:00 AM JOLTS
01:00 PM 3-Year Note Auction

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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