Outlook 03/18: U.S. stock futures point to lower open after inflation concerns continue to rattle investors as the yield curve steepens, with some concerned by the fact that Powell was quick to dismiss inflation as being short-term in nature. The biggest news was a pledge not to raise interest rates until 2024 and continuation of purchase program in which the central bank buys at least $120B of bonds per month.
/ESM21 (June Contract): YVAH 3957 YPOC 3932 YVAL 3926 GAP 3965
/ES Plan: Yesterday market closed bimodal, but overnight looks more bearish, still moving within yesterday's range, so these are the initial balance options for today:
A) If market moves above LIS HVE 3936 with bullish internals, buy towards HVE 3960 GAP 3965 and ONH 3978.50
B) If market moves below LIS HVE 3936 with bearish internals, sell towards HVE 3913-3890-3878 and GAP 3870.
Note: Overnight inventory is 90% bearish. 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. Remember that new record high has been printed overnight, so it's still pending to be revisited at regular trading hours.
Market Movers
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
4:30 PM Fed Balance Sheet
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