Shutdown Looms



Outlook 01/19: Congress likely racing toward a government shutdown: A bitterly-divided Congress hurtled toward a government shutdown this weekend in a partisan stare-down over demands by Democrats for a solution on politically fraught legislation to protect about 700,000 younger immigrants from being deported. Democrats in the Senate have served notice they will filibuster a four-week, government-wide funding bill that passed the House Thursday evening. Congress now has less than 24 hours to avoid a shutdown.

/ES Value: YVAH 2803 YPOC 2800 YVAL 2798

/ES Plan: Yesterday market left an inside day after Wednesday trend session. Overnight inventory is balanced moving a few ticks below yesterday's value. Today, we've high odds to see a breakout of yesterday inside range, so we've these options:

A) If market starts to move above YVAH 2803 with bullish internals, try to be a buyer leaning on 2803-2802 towards ONH 2806 ATH 2809.50 and PBT 2816. Failure to take out ONH 2806 early is a signal of weakness.

B) If market starts to move below YVAL 2798 with bearish internals, try to be a seller leaning on 2798-2799 towards GAP 2796.50 and LVN 2790. Failure to breakdown LVN 2798 early is a signal of a strength.

C) If market remains inside yesterday's range 2803-2798 with neutral internals, try to be patience and wait for some decent imbalance.

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

10:00 Consumer Sentiment
12:15 PM Fed's Quarles
01:00 PM Baker-Hughes Rig Count

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

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