Outlook 06/18: U.S. stock futures fell on Friday as St. Louis Fed President Jim Bullard said on CNBC that it was natural for the Fed to tilt a little “hawkish” this week and that the first rate increase from the central bank would likely come in 2022. The decline in stocks came as the Fed’s actions caused a drastic flattening of the so-called Treasury yield curve where the yields of shorter-duration Treasurys, like the 2-year note, rose, while longer duration yields, such as the benchmark 10-year, fell. The retreat in long-dated bonds reflects less optimism toward economic growth, while the jump in short-end yields shows the expectations of the Fed raising rates.
/ESU21: YVAH 4220 YPOC 4213 YVAL 4203 GAP 4213.25
/ES Plan: Yesterday market closed bullish, but overnight looks more bearish, moving below yesterday's value so these are the initial balance options for today:
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