Outlook 03/15: U.S. stock futures are little changed Friday as investors tried to wrap up a big week of inflation data on a strong note. Thursday’s retreat came after February’s producer price index, a gauge of wholesaler inflation, advanced more than economists anticipated. Fed funds futures are pricing in a 99% likelihood of the central bank keeping interest rates unchanged at its policy meeting next week. Today trading volumes will be elevated and prices may be more volatile as futures and options on stock indexes and individual stocks all expire simultaneously in a process known as “triple witching”.
/ESM24 (JUN 2024): YVAH 5223 YPOC 5217 YVAL 5199 GAP 5217.75
/ES Plan: Yesterday market closed balanced, and overnight continues on that way, moving within value, so these're the opening and initial balance options for today:
A) If market moves above YVAL 5199 with bullish internals, buy towards YPOC-GAP 5217 YVAH 5223 and ATH 5253.
B) If market moves below YVAL 5199 with bearish internals, sell towards HVE 5193 YLOD 5188 and HVEs 5151-5125.
Note: It's triple witching day, which refers to the simultaneous expiration of stock options, market index options and market index futures. The event can lead to higher volatility and more trading volumes, with high-frequency traders trying to take advantage for quick arbitrage opportunities. It happens four times a year - on the third Friday of March, June, September and December - with much of the increases in activity taking place during the last hour of trading, otherwise known as the "witching hour."
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