Rally Mode

Outlook 03/27: U.S. index futures stay in rally mode. It's a powerful comeback from one of the worst weeks for stocks in years. Reports of trade talks between the U.S. and China have reduced fears of a possible trade war, while some traders are pointing to additional forces, including equity valuations, chart patterns and fund positioning.

/ESM8 Value: YVAH 2662.50 YPOC 2659.50 YVAL 2623.50

/ES Plan: Yesterday market closed bullish (PBT 2706) and overnight continues on rally mode (GBT 2686), moving above Yesterday's range, so options are:

A) If market remains above LVN 2668 with bullish internals, try to be a buyer leaning on 2668 towards LVN 2680 LVN 2694 and HVE 2703. 'Look below and fail' is a signal of strength.

B) If market starts to move below LVN 2668 with bearish internals, become a seller leaning on 2668 towards GAP 2660 ONL 2656 and LVN 2640. 'Look above and fail' is a signal of weakness.

Tips: High Volume Edge (HVE) refers to the last upper/lower level of a higher volume range with great chance to work as support/resistance area. More on Glossary.

Today's Economic Calendar

10:00 Consumer Confidence
10:00 Richmond Fed Manufacturing Index
11:00 PM Fed's Bostic Speech
01:00 PM 5-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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