Outlook 08/02: U.S. stock futures point to a balanced open after progress on a massive U.S. infrastructure proposal also boosted sentiment, while concerns eased over China's recent regulatory crackdown. Markets remain at risk of a short-term correction or volatility as coronavirus cases rise globally, the inflation scare continues and as we come into seasonally weaker months, but surging company profits in the U.S. and lower bond yields are providing support.
/ESU21: YVAH 4395 YPOC 4391 YVAL 4385 GAP 4394.75
/ES Plan: Last session market closed balanced, but overnight looks bimodal (LIS 4409), moving above Friday's value, so these are the initial balance options for today:
A) If market moves above HVE 4409 with bullish internals, buy towards ONH 4419.75 ATH 4422.50 and PBTs 4427-4434-4443.
B) If market remains below HVE 4409 with bearish internals, sell towards YVAL-GAP-ONL 4395 YVAL 4385 and GAP 4363.
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
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
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