Hawkish Powell

Outlook 04/17: U.S. stock futures higher on Wednesday morning after the SP500 notched its third straight day of losses. The moves come after Federal Reserve Chair Jerome Powell said that the Federal Reserve needs to see more progress on the inflation front before the U.S. central bank is likely to begin cutting rates. The primary headwind is the hawkish repricing of Fed expectations. Fed Chair Powell did much to ease those concerns yesterday. The market is getting to a place where it’s questioning whether there will be a rate cut at all in 2024.

/ESM24 (JUN 2024): YVAH 5107 YPOC 5100 YVAL 5090 GAP 5092

/ES Plan: Yesterday market closed balanced, but overnight looks slight bullish, moving above yesterday value, so these're the opening and initial balance options for today:

A) If market moves above YVAH 5107 with bullish internals, buy towards HVEs 5125-5155-5195 and GAP 5243.

B) If market moves below YVAH 5107 with bearish internals, sell towards GAP 5092 YVAL 5090 and HVE 5060.

Note: VIX is rising. If you’re a new futures trader or a veteran who has hit a rough patch, you might also consider downsizing your contracts. For example, if you wanted to trade small you can trade Micro E-mini contracts for the same index, with a $5 times the value of the index. 

Market Movers

10:00 Atlanta Fed's Business Inflation Expectations

10:30 EIA Petroleum Inventories

1:00 PM 20-Year Bond Auction

2:00 PM Fed's Beige Book

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