Outlook 02/13: A recovery for U.S. equities showed signs of faltering overnight, with SP500 futures down after Yesterday marked the second-straight winning session. Today investors will contend with a largely open calendar, as the National Federation of Independent Business latest reading on small business optimism will be the only big economic data report released in the morning.
/ES Value: YVAH 2665 YPOC 2654 YVAL 2638
/ES Plan: Yesterday market closed leaving bullish imbalance (PBT 2688) and overnight is balanced moving within Yesterday's value, so we've these options:
A) If market remains above LIS 2638 with bullish internals, try to be a buyer leaning on 2638-2641 towards GAP 2654.75 ONH 2659.25 and YVAH 2665. 'Look above and fail' is a signal of weakness.
B) If market starts to move below LIS 2638 with bearish internals, try to be a seller leaning on 2638-2636 towards GAP 2618 and LVNs 2607-2595. 'Look below and fail' is a signal of strength.
Tips: Market does appear to be calming down but it's still thin. If you can't trade using wide stops (10-15 pts), I recommend to trade 1/3 of your normal size or stay aside until the markets stabilize and recover a 'normal' regime.
Today's Economic Calendar
8:55 Redbook Chain Store Sales
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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