Outlook 03/12: U.S. stock futures decline overnight, led by tech shares, implying the recent uptick in demand for growth stocks was giving way at the end of the week. Bond jitters are resurfacing despite a festive atmosphere over stimulus checks, which could begin hitting bank accounts this weekend and supplement the missing hour of sleep on Sunday (reminder to change your clocks). This morning, the 10-year Treasury yield is up another 7 bps, returning to the 1.6% level, triggering some fresh fears for investors.
/ESH21 Value: YVAH 3956 YPOC 3950 YVAL 3926 GAP 3936.50
/ES Plan: Yesterday market closed balanced and bimodal, but overnight looks more bearish, moving below yesterday's value, so these are the initial balance options for today:
A) If market moves above LIS HVE 3913 with bullish internals, buy towards ONH-HVE 3937 ATH 3959.25 and PBT 3970.
B) If market moves below LIS HVE 3913 with bearish internals, sell towards ONL 3900.75 HVE 3878 and GAP 3870.50.
Note1: 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 (VAR)' comes into play. Remember that new record high has been printed overnight, so it's still pending to be revisited at regular trading hours.
Note2: Rollover. Pace of the Roll is near 45%. I start quoting /ESM21 as June contract increases to equal volume of March /ESH21. During this time, we don't read volume, delta, tape and order flow the same way, so setups that usually work, may fail completely.
Market Movers
10:00 Consumer Sentiment
10:00 Quarterly Services Report
1:00 PM Baker-Hughes Rig Count
Follow updates using TweetDeck. Primary twitter language is English.
Follow the market news or listen to the order flow via FinancialJuice.
Questions via twitter direct message (RTH) or email (After Close).
