Delta cases surge

Outlook 07/15: U.S. stock futures point to a bearish open as coronavirus infections rapidly rise in the U.S. and around the globe. At the last count, the number of new U.S. COVID-19 cases per day has doubled over the past three weeks to 26,000, driven by the highly contagious Delta. Meanwhile, FED Chairman Powell is quelling investor fears about a rollback of the central bank's easy policies despite the recent spike in inflation. Powell will be on Capitol Hill again today, where he'll appear before the Senate for his semiannual testimony on monetary policy.

/ESU21: YVAH 4379 YPOC 4370 YVAL 4364 GAP 4368.25

/ES Plan: Yesterday market closed balanced, but overnight looks bimodal bearish (LIS 4358), moving below yesterday's value, so these are the initial balance options for today:

A) If market moves above LIS 4358 with bullish internals, buy towards  YVAL-HVE 4364 GAP 4368.25 and ONH 4370.25

B) If market remains below LIS 4358 with bearish internals, sell towards ONL 4345.25 HVE 4341 GAP 4309 and HVE 4278.

Note: Market opens below previous value area and it's a clearly bearish signal. But, if market begins to trade within value with volume increasing, 'Value Area Rule (VAR)' comes into play. 

Market Movers

9:30 Powell Testimony

10:30 EIA Natural Gas Inventory

11:00 Fed's Evans Speech

4:30 PM Fed Balance Sheet

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