Yellen Confirmation

Outlook 01/19: U.S. stock futures are pointing to gains as traders mull the stimulus plans. While Yellen is also expected to affirm America's commitment to market-determined exchange rates on Capitol Hill, concerns are surfacing over the national debt, which is currently at its highest level relative to the American economy since the end of WWII. At 100.1% of GDP, the debt already exceeds the annual output of the economy, putting the U.S. in company with economies like Greece, Italy, France and Japan.

/ESH21 Value: YVAH 3778 YPOC 3771 YVAL 3759 GAP 3768.50

/ES Plan: Last session market closed bearish, but overnight looks bullish, moving above previous value, so these are the initial balance options for today:

A) If market remains above LIS 3778 with bullish internals, buy towards ONH 3796.25 GAP 3823 and PBTs 3833-3846.

B) If market moves below LIS 3778 with bearish internals, sell towards GAP 3768.50 HVE 3754 and ONL 3740.50.

Note: Overnight inventory is 100% bullish. The expected action is a counter-auction relative to overnight inventory; failure to see the counter-auction would be an indication of a potential trend day.

Market Movers

4:00 PM Treasury International Capital

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