Outlook 03/01: U.S. stock futures started the new month moving sharply higher Monday, as Treasury yields retreated from their highs from last week, easing concerns about inflation and that higher rates would undermine equity valuations. Stocks were pressured by rising interest rates. Higher interest rates can threaten the dominance of equities, as bonds are viewed as less risky, and compress stock valuation by reducing the value of future cash flows.
/ESH21 Value: YVAH 3848 YPOC 3827 YVAL 3818 GAP 3802.25
/ES Plan: Last session market closed bearish, but overnight looks more bullish (PBT 3887), moving a few ticks above Friday's value, so these are the initial balance options for today:
A) If market remains above LIS YVAH 3848 with bullish internals, buy towards ONH 3857 and HVEs 3864-3878.
B) If market moves below LIS 3848 with bearish internals, sell towards HVE 3821 ONL 3812.50 and GAP 3802.
Note: Market opens above previous value area and if it remains above value, it is a clearly bullish signal. But, if market begins to trade within value with volume increasing, 'value area rule' comes into play.
Market Movers
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
2:00 PM Fed's Bostic Speech
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