Outlook 08/11: U.S. stock futures point to bullish open after July consumer prices jump 5.4%, but core inflation rises less than expected. Prices that Americans pay for everyday goods and services continued their recent acceleration in July as pent-up demand for travel and restaurants kept inflation hot, but about where economists had expected. Data release suggest some easing in the reopening and supply-shortage driven boost to prices, and tentatively suggests that inflation may have peaked. CPI data should help assuage investor fears that the Fed is too laid-back about inflation pressures.
/ESU21: YVAH 4434 YPOC 4429 YVAL 4426 GAP 4427.50
/ES Plan: Yesterday market closed balanced, but overnight looks more bullish, moving above yesterday's range, so these are the initial balance options for today:
A) If market remains above YHOD 4438 with bullish internals, buy towards ONH-ATH and PBTs 4443/4448.
B) If market moves below YHOD 4438 with bearish internals, sell towards YVAH 4434 GAP 4427.50 and HVE 4423.
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. The expected action is a counter-auction relative to overnight reaction; failure to see the counter-auction would be an indication of potential trend day.
Market Movers
10:00 Atlanta Fed's Business Inflation Expectations
10:30 EIA Petroleum Inventories
10:30 Fed's Bostic Speech
12:00 PM Fed's George Speech
1:00 PM 10-Year Note Auction
2:00 PM Treasury Budget
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