Outlook 12/10: U.S. stock futures pointed to a lower open, with investors watching continued talks in Washington around reaching coronavirus stimulus and government funding deals. The Labor Department on Thursday reported a much larger than expected 853,000 new filings for unemployment benefits for the week ended Dec. 5, compared with the upwardly revised 716,000 the prior week, which was the lowest total of the coronavirus era. However, initial jobless claims have been running well above record levels seen before the pandemic.
/ESZ20 Value: YVAH 3696 YPOC 3669 YVAL 3660 GAP 3669.25
/ES Plan: Yesterday market closed bearish (PBT 3625), and overnight continues on that way, moving a few ticks below yesterday's value, so these are the initial balance options for today's opening:
A) If market remains below LIS YVAL 3660 with bearish internals, sell towards HVEs 3650-3638 GAP 3628 and PBT 3625.
B) If market moves above LIS 3660 with bullish internals, buy towards YVAL 3660 YPOC 3669 ONH 3681.25 and YVAH 3696.
Note: Market opens below previous value area and if it remains below value, it is a clearly bearish signal. But, if market begins to trade within value with volume increasing, '
value area rule' comes into play. Remember that new record high has been printed overnight, so it's still pending to be revisited at regular trading hours.
Note:
Rollover begins. Pace of the Roll is around 30%. I'm still quoting /ESZ20 until new /ESH21 increases to equal volume of December, probably tomorrow. Usually rollover days show big divergences between Stocks vs. Futures, so setups that usually work, may fail completely.
Market Movers
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
1:00 PM 30-Year Note Auction
2:00 PM Treasury Budget
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
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