Shutdown Continues



Outlook 01/22: As the government shutdown enters a third day, U.S. futures are edging down.The U.S. Senate has scheduled a noon vote for today on a stopgap spending measure, ensuring the federal government will remain closed when the work week begins. US index markets have shown only modest weakness during shutdowns, with the SP500 falling an average of 0.6% historically over the period of closure.

/ES Value: YVAH 2810 YPOC 2804 YVAL 2802

/ES Plan: On Friday market left a balanced day session. Overnight inventory is also balanced moving a few ticks above yesterday's value, so we've these options:

A) If market remains above LIS 2808 with bullish internals, try to be a buyer leaning on 2808-2810 towards ONH 2812 ATH 2815 and PBT 2828. Failure to take out ONH 2812 early (1st 30m) is a signal of weakness.

B) If market starts to move below LIS 2808 with bearish internals, try to be a seller leaning on 2808-2805 towards YVAL 2802 and LVN 2790. Failure to breakdown LIS 2808 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

11:00 3 Month bill auction
11:00 6 Month bill auction

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

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