Powell vs. Yellen

Outlook 05/05: U.S. stock futures ticked higher overnight, after Jerome Powell insisted that he's "not even thinking about thinking about higher rates" until the labor market recovers from last year's economic downturn. This comment came after Treasury Secretary Janet Yellen said on Tuesday that "interest rates will have to rise somewhat to make sure our economy doesn't overheat", triggering a selloff in tech sector which depends on low rates for its growth and expansion. Sentiment today has shifted in favor of Powell's outlook. 

/ESM21: YVAH 4153 YPOC 4143 YVAL 4126 GAP 4156

/ES Plan: Yesterday market closed balanced, but overnight looks more bullish, moving above yesterday's value, so these are the initial balance options for today:

A) If market moves above HVE 4164 with bullish internals, buy towards ONH 4179 GAP 4182.75 and HVE 4188.

B) If market moves below HVE 4164 with bearish internals, sell towards GAP 4156 ONL 4155.25 and YVAH 4153.

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 potential trend day. 

Market Movers

9:30 Fed's Evans

9:45 PMI Services Index

10:00 ISM Non-Mfg Index

10:30 EIA Oil Inventories

11:00 Fed's Rosengren

12:00 PM Fed's Mester

3:00 PM Fed's Evans

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