More Records High

Outlook 01/24: The SP500 ended Tuesday's session with its 12th record close of the year. Big session gains and minimal losses have meant all-time highs for every positive trading day this year. What's more, the S&P 500 is currently in its longest streak without a 5 percent drawdown. It's unlikely that the SP500 can sustain the pace of gains. If the index were to continue at this pace, it would double in value by year's end.

/ES Value: YVAH 2843 YPOC 2840.50 YVAL 2837

/ES Plan: Yesterday market left a bullish profile (PBT 2851). Overnight inventory is balanced 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 2843 with bullish internals, try to be a buyer leaning on 2843-2845 towards ONH 2850.25 and PBT 2851. Failure to take out ONH early (1st 30m) is a signal of weakness.

B) If market starts to move below YVAH 2843 with bearish internals, try to be a seller leaning on 2843 towards GAP 2839.50 and ONL. Failure to breakdown YVAH early (1st 30m) 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. Manage trades according to your size, scaling out exits, moving stops to breakeven. Manage your risk, your goal is to come back next day.

Today's Economic Calendar

09:45 PMI Composite Flash
10:00 Existing Home Sales
10:30 EIA Petroleum Inventories
01:00 PM 5-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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