Sell-Off Continues

Outlook 02/05: U.S. stock index futures posted sharp declines ahead of Monday's open, extending losses from the previous session. Earnings and data are set to be at the front of traders minds. Services PMI index data is due out at 9:45 a.m. ET, followed by the non-manufacturing ISM report at 10 a.m. ET. Today, Fed Governor Jerome Powell is to take on the role of chair of the U.S. Federal Reserve, inheriting the position from the first female chair, Janet Yellen.

/ES Value: YVAH 2793 YPOC 2760 YVAL 2757

/ES Plan: Friday closed balanced after a stronger-than-expected jobs report sent interest rates higher. Overnight is balanced moving below Friday's value, so we've these options:

A) If market remains above LIS 2744-45 with bullish internals, try to be a buyer leaning on 2744-2745 towards GAP-ONH-YVAL 2857 and YPOC 2760. Failure to take out ONH 2757 early is a signal of weakness.

B) If market starts to move below LIS 2744-45 with bearish internals, try to be a seller leaning on 2845-2744 towards ONL 2733 and GAP 2724. Failure to breakdown ONL 2733 early is a signal of a strength.

Tips: Failures give some clues about market bias. Once an auction 'looks above a key high and fails', or 'looks below a key low and fails', you could recognize the possibility of a move to the opposite extreme.

09:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
12:30 PM TD Ameritrade IMX

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

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