Outlook 05/11: Quiet day at stock markets on their best week since March. There are no major earnings announcements on the calendar. On the economic data front, we'll get the preliminary May reading on the consumer sentiment from the University of Michigan. Economists expect the headline index improved to 99.0 from 98.8 in April. All eyes will be on the report to see how consumers have internalized the steady stream of volatile headlines from the Washington. Meanwhile, oil prices trade near 3 1/2 year highs. It'll be interesting to see how the prospect for higher gasoline prices is impacting consumer sentiment.
/ESM8 Value: YVAH 2725 YPOC 2720 YVAL 2713
/ES Plan: Yesterday market closed bullish (PBTs 2735-47) but overnight inventory is balanced, moving within yesterday's value, so as usual, we've these options:
A) If market remains below YVAH 2724-25 with bearish internals, become a seller leaning on 2725 towards GAP 2718 ONL 2716.25 and YVAL 2713. 'Look above and fail' is a signal of weakness.
B) If market starts to move above YVAH 2725-23 with bullish internals, be a buyer leaning on 2725 towards ONH 2726.75 HVE-PBT 2736 PBT 2747. 'Look below and fail' is a signal of strength.
Tips: Emotional chasing never works well. A good rule when you are feeling that kind of anxiety is to recognize that and quit for the rest of the day.
Today's Economic Calendar
10:00 Consumer Sentiment
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.
Questions? Just ask via email or twitter @verniman direct message.
