Outlook 01/16: Continuing on their path of record-breaking runs, stocks are set to roar back from an extended holiday weekend, with SP500 futures testing 2800! The broader move higher comes on the back of dollar weakness and robust corporate earnings reports. Investors are also on the lookout for a funding bill that would avoid a government shutdown on Friday as lawmakers seem to move farther apart on DACA.
/ES Value: YVAH 2796 YPOC 2794 YVAL 2793
/ES Plan: On Friday market closed leaving a bullish profile (PBT 2796) thar has been filled yesterday on the US holiday session. Overnight inventory is bullish (PBT 2812) moving above yesterday's value and printing a new record high that should be visited on the regular session, so as usual we've these options:
A) If market remains above YVAH 2796 with bullish internals, try to be a buyer leaning on 2796-2797 towards ONH 2803.50 and PBT 2812. Failure to take out ONH early is a signal of weakness.
B) If market starts to move below YVAH 2796 with bearish internals, try to be a seller leaning on 2796-2797 towards ONL-GAP 2789.75-88.50 Failure to breakdown ONL early is a signal of a strength.
Tips: Remember, stick to a trading plan and a systematic process, don't try to seek perfection. Use buy/sell range zones, not absolute levels. Take trades according to your risk, your goal is to come back next day.
Today's Economic Calendar
8:30 Empire State Mfg Survey
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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