Outlook 02/01: The earnings wave is set to continue today as Apple, Amazon, Alibaba and Alphabet open their books for scrutiny following yesterday's results from Microsoft and Facebook. A lot is riding on the success of tech companies as the recent deluge of reports has helped U.S. stocks indexes climb back from two days of losses. The sector accounts for more than a fifth of the SP500, meaning strong earnings could determine the direction of the stock market overall this week.
Yesterday, The Federal Reserve held its Fed Funds target range at 1.25-1.5% as Janet Yellen gets ready to depart the central bank. The economy continues to strengthen, and inflation is expected to move up, according to the policy statement, while the FOMC continues to anticipate further gradual increases in short-term rates.
/ES Value: YVAH 2836 YPOC 2827 YVAL 2825
/ES Plan: Yesterday closed balanced. Overnight is multimodal moving below yesterday's value, so we've these options:
A) If market remains below YVAL 2825 with bearish internals, try to be a seller leaning on 2825-2823 towards ONL 2813.50 Edge 2809 and PBT 2798. Failure to breakdown ONL 2813.50 early is a signal of a strength.
B) If market starts to move above YVAL 2825 with bullish internals, try to be a buyer leaning on 2825 towards GAP 2829.50 YVAH 2836 and ONH 2837. Failure to take out YVAL 2825 early is a signal of weakness.
Tips: If market starts to move below edge 2809, it's a 'Value Transition' and that means a potential change on value perception. Then we've to watch closely if new value is acceptable or rejected.
09:45 PMI Manufacturing Index
09:45 Bloomberg Consumer Comfort Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:30 EIA Natural Gas Inventory
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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