Outlook 05/17: Government borrowing costs are continuing to grind upwards. The 10-year Treasury yield has broken through 3.1% (its highest level since July 2011) as higher oil prices pointed to increased inflation following yesterday's upbeat U.S. retail sales numbers. Economic figures today, like jobless claims, could boost yields further as market players become even more confident about upcoming Fed rate hikes.
/ESM8 Value: YVAH 2727 YPOC 2723 YVAL 2717
/ES Plan: Yesterday market closed bullish (PBT 2733-2741) and overnight shows slight bearish bias, moving within yesterday's value, so we've these options:
A) If market remains below LIS 2720 with bearish internals, become a seller leaning on 2720-19 towards ONL 2715.50 HVE 2712 GAP 2709 and LVN 2700. Overnight inventory is short so we could see a bounce at the open. Remember, 'Look above and fail' is a signal of weakness.
B) If market starts to move above LIS 2720 with bullish internals, be a buyer leaning on 2720-21 towards ONH 2725.25 GAP 2730.50 PBT 2733 2741. Bearish profile points to lower targets but keep in mind this quote: 'Look below and fail is a signal of strength'.
Today's Economic Calendar
09:45 Bloomberg Consumer Comfort Index
10:00 E-Commerce Retail Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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