Red Tuesday




Outlook 01/30: U.S. stock index futures were trading sharply lower ahead of Tuesday's open as investors braced for a second straight day of selling. President Donald Trump is expected to deliver his State of the Union address for 2018 to a joint session of Congress.

/ES Value: YVAH 2868 YPOC 2863 YVAL 2856

/ES Plan: Yesterday closed balanced. Overnight is bearish (GBT 2825) moving below yesterday's value, so as usual, we've these options:

A) If market remains below LVN 2846 with bearish internals, try to be a seller leaning on 2846-2845 towards LVN 2836 ONL 2831 and GBT 2825. Failure to breakdown ONL 2831 early is a signal of a strength.

B) If market starts to move above LVN 2846 with bullish internals, try to be a buyer leaning on 2846 towards GAP 2853.75 YVAL-ONH 2856-58. Failure to take out LVN 2846 early is a signal of weakness.

Tips: We are gapping down double digits away from yesterdays range. Larger gaps may not fill or will fill only partially on the first day. If the gap fills and value cannot get to at least overlapping, then the odds of a late day sell off increase.

Today's Economic Calendar

10:00 Consumer Confidence
10:00 State Street Investor Confidence Index

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

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