Outlook 02/16: U.S. stock markets have now rallied for five consecutive sessions since falling into correction territory last week, with both indexes up 4% and on track for their biggest weekly percentage rise since November 2016. Markets are taking a look at the inflationary outlook and saying OK, maybe rates are going up and maybe the economy will compensate for that.
/ES Value: YVAH 2728 YPOC 2709.50 YVAL 2704
/ES Plan: Yesterday market closed balanced and overnight is slight bearish (GBT 2728) moving above Yesterday's value, so as usual, we've 2 options:
A) If market remains above YVAH 2728 with bullish internals, try to be a buyer leaning on 2728-2733 towards ONH 2746.75 PBT 2750 and LVN 2763. 'Look below and fail' is a signal of strength.
B) If market starts to move below YVAH 2728 with bearish internals, try to be a seller leaning on 2728 towards LVN 2722 YPOC 2709.40 YVAL 2704. 'Look above and fail' is a signal of weakness.
Tips: Market does appear to be calming down but depth of market (DOM) is still thin, mostly below 200s contracts, still seeing sweeps 5-6 ticks at a time and very few prints as we move through prices. If you can't trade using wide stops (10 pts), I recommend to stay aside until the markets stabilize and recover a 'normal' regime.
Today's Economic Calendar
10:00 Consumer Sentiment
10:00 E-Commerce Retail Sales
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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