Eye on inflation

Outlook 07/16: U.S. stock futures still powering near record highs as policymakers attempt to calm investor concerns following this week's sizzling CPI report, which came in at a whopping 5.4% for June (the fastest pace since 2008). Fed Chairman Powell also defended the central bank's accommodative approach during Day 2 of his testimony before Congress, but he did flag some caution. Treasury Secretary Janet Yellen also said on Thursday that we'll see inflation decline back toward normal levels. But, of course, we have to keep a careful eye on it.

/ESU21: YVAH 4358 YPOC 4353 YVAL 4345 GAP 4348

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

A) If market remains above YVAH 4358 with bullish internals, buy towards  HVE 4364 GAP 4368.25 and ATH 4384.50

B) If market remains below YVAH 4358 with bearish internals, sell towards GAP 4348 YVAL 4345 and ONL 4338.50

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

Market Movers

10:00 Business Inventories

10:00 Consumer Sentiment

1:00 PM Baker-Hughes Rig Count

4:00 PM Treasury International Capital

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