FOMC Sell Off

Outlook 02/22: U.S. stock index futures are looking at a positive open after a late sell off in U.S. equities yesterday, stoked by the minutes of the Fed's last policy meeting and fresh concerns about higher interest rates. The 10-year Treasury yield hit 2.95% on Wednesday, the highest since 2013, after the minutes from the latest FOMC meeting indicated Fed officials are expecting inflation to rise in the year ahead.

/ES Value: YVAH 2737 YPOC 2733.50 YVAL 2712

/ES Plan: Yesterday market closed multimodal and overnight is bimodal (LIS 2698) below Yesterdays value, so we've 2 options:

A) If market remains above Edge-LIS 2700-2698 with bullish internals, try to be a buyer leaning on 2700 towards YVAL 2712 LVN 2722 and YVAH 2737. 'Look above and fail' is a signal of weakness.

B) If market starts to move below Edge-LVN 2700-2698 with bearish internals, try to be a seller leaning on 2698 towards ONL 2683 and LVN 2678. 'Look below and fail' is a signal of strength.

Today's Economic Calendar

09:45 Bloomberg Consumer Comfort Index
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
11:00 Kansas City Fed Mfg Survey
01:00 PM 7-Year Note Auction

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

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