Outlook 09/19: Stock futures tick higher Thursday as traders digested the Federal Reserve’s Wednesday decision to lower interest rates by a half percentage point. Traders got some validation that the Fed was engineering a soft landing for the economy on Thursday as weekly jobless claims fell by 12,000 to 219,000, which was far below estimates. The Fed slashed its overnight lending rate to a range of 4.75% to 5% from 5.25% to 5.5% on Wednesday, which came as a surprise to some investors who criticized the size of this initial cut. This is the first rate reduction delivered by the Fed in four years.
ESZ24 (DEC2024): YVAH 5712 YPOC 5700 YVAL 5685 GAP 5690.75
/ES Plan: Yesterday market closed bearish (PBT 5654), but overnight looks bullish (PBT 5853), moving above previous value/range, so these're the opening and initial balance options for today:
A) If market moves above YHOD 5756 with bullish internals, buy towards ONH-ATH-ETH 5779 and PBT 5853 magnet.
B) If market moves below YHOD 5756 with bearish internals, sell towards YVAH 5712 GAP 5690 and YVAL 5685 magnet.
Note: New record high has been printed overnight, so it's still pending to be revisited at regular trading hours. Overnight inventory is 100% bullish. The expected action is a counter-auction; failure to see the counter-auction would be an indication of potential bullish trend day. Market opens above value and if it begins to trade within value, VAR comes into play. FOMC day always offer an overreaction, Today is the real reaction to yesterday news, and Tomorrow is when we have confirmation of the next trend.
Market Movers
10:00 AM Existing Home Sales
10:00 AM Leading Indicators
10:30 AM EIA Natural Gas Report
01:00 PM 17B, 10-Year TIPS Auction
02:00 PM Treasury Buyback Results
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