Outlook 05/14: U.S. stock futures set for a balanced open after another inflation gauge comes in hot with producer prices jumping 6.2% in April from a year ago. The Producer Price Index rose 0.6% last month, according to the U.S. Bureau of Labor Statistics. The Producer Prices Index came into focus after Wednesday’s consumer prices report showed hotter-than-expected inflation and triggered a big sell-off in the stock market.
/ESM21: YVAH 4112 YPOC 4078 YVAL 4052 GAP 4056.50
/ES Plan: Yesterday market closed bearish (PBT 4007), but overnight looks more balanced, moving within yesterday's value, so these are the initial balance options for today:
A) If market moves above YPOC 4078 with bullish internals, buy towards HVE 4100 YVAH 4112 GAP 4140 and HVE 4164.
B) If market remains below YPOC 4078 with bearish internals, sell towards GAP 4056.50 ONL 4029.25 GAP 4014 and PBT 4007.
Note: Yesterday market started a 'Value Transition' and that means a change on value perception. We've to watch closely if higher edge HVE 4100 could be broken towards previous value higher.
Market Movers
10:00 Fed's Barkin Speech
10:30 EIA Natural Gas Inventory
1:00 PM Fed's Waller Speech
1:00 PM 30-Year Note Auction
4:00 PM Fed's Bullard Speech
4:30 PM Fed Balance Sheet
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