U.S. economy grew

Outlook 01/26: The SP500 set to open near last record high after The Commerce Department says U.S. economy grew at a solid rate of 2.6 percent in the final three months of last year, helped by the fastest consumer spending since the spring of 2016 and a big rebound in home construction. For all of 2017, the economy grew 2.3 percent.

/ES Value: YVAH 2845 YPOC 2840 YVAL 2836

/ES Plan: Yesterday market left the 3rd day of balanced profile. Overnight inventory is bimodal (LIS 2847), moving above yesterday's value, so as usual, we've these options:

A) If market remains above LIS 2847 with bullish internals, try to be a buyer leaning on 2847 towards ONH 2852.25 and ATH 2855.25 Failure to take out ONH early (1st 30m) is a signal of weakness.

B) If market starts to move below LIS 2847 with bearish internals, try to be a seller leaning on 2847 towards GAP 2841 and YVAL 2836. Failure to breakdown YVAH early (1st 30m) is a signal of a strength.

Tips: Manage trades according to your size, if you use one contract, exit at first target. If you trade several lots, scale exits, and then move stop to breakeven. Manage your risk, your goal is to come back next day.

Today's Economic Calendar

1:00 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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