Outlook 06/14: The world's central banks are tightening monetary policy. Yesterday, the Federal Reserve announced a quarter point interest rate hike and signaled two more hikes would come by the end of the year. Later Thursday morning, the European Central Bank announced its plan to end its stimulative asset purchase program. Analysts warn these actions could lead to some market volatility as liquidity is pulled out of the financial system.
/ESU8 Value: YVAH 2795 YPOC 2792.50 YVAL 2785
/ES Plan: Yesterday market closed balanced. Overnight profile is also balanced, moving within yesterday's value, so we've these options:
A) If market remains above YVAL 2785 with bullish internals, become a buyer leaning on 2785 towards ONH 2789.25 YVAH 2795 LIS 2800 and PBT 2808. 'Look below and fail' is a bullish signal.
B) If market starts to move below YVAL 2785 with bearish internals, become a seller leaning on 2785 towards GAP 2778.50 ONL 2772.25 and LVN 2766. 'Look above and fail' is a bearish signal.
Tips: Trade entries and exits always depend on each trader account size, financial situation, risk tolerance and time frame style (swing or scalp). You can combine both (Scalp/Swing) in a scale-out trade strategy, where one set of contracts is scalped and a second set is left open for a possible runner towards key levels (VAH-VAL/HOD-LOD/PBT-GAP).
Today's Economic Calendar
09:45 Bloomberg Consumer Comfort Index
10:00 Business Inventories
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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