Back to the High

Outlook 01/25: The SP500 set to open near last record high as ECB keeps rates unchanged and repeated that it expects to keep interest rates at present levels for an “extended period” and “well past” the end of its asset purchase program, which is due to expire in September. At 10 a.m. ET, markets are due to get December data on new home sales. Economists predict 680,000 homes were sold.

/ES Value: YVAH 2848 YPOC 2840 YVAL 2836

/ES Plan: Yesterday market left a balanced profile. Overnight inventory is bullish (GBT 2862), moving a few ticks above yesterday's value, so as usual, we've these options:

A) If market remains above YVAH 2848 with bullish internals, try to be a buyer leaning on 2848-49 towards ATH 2855.25 and GBT 2862. Failure to take out ATH early (1st 30m) is a signal of weakness.

B) If market starts to move below YVAH 2848 with bearish internals, try to be a seller leaning on 2848-47 towards GAP 2841.50 and LVN 2836. Failure to breakdown YVAH early (1st 30m) is a signal of a strength.

Today's Economic Calendar

10:00 New Home Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
01:00 PM 7-Year Note Auction

Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.

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