Outlook: U.S. stock index futures are heading lower, while the dollar is poised for its biggest weekly drop in a month, as investors fret about tax reform delays. U.S. Senate Republicans have unveiled a plan that differs from the House's version on several key fronts, including when to slash corporate tax rate, deductions for state and local taxes, and the estate tax. The House is set to vote on its measure next week, but the Senate's timetable is less clear.
/ES Value: YVAH 2584 YPOC 2578 YVAL 2573
/ES Plan: Yesterday market closed balanced. Globex printed a record high pending to be revisited during RTH. Overnight shows a bimodal profile (LIS 2579), moving within yesterday's value, so we've 2 options:
A) If market remains below LIS 2579 with internals falling, try to be a seller leaning on 2579-2578 towards ONL 2571.50 and LVNs 2570-2565. Failure to breakdown ONL early is signal of a strength.
B) If market starts to move above LIS 2579 with internals rising, try to be a buyer leaning on 2579-2580 towards YVAH 2584 and ONH 2585.75 Failure to take out ONH early is signal of weakness.
Tips: If you use VWAP, you'll not want to use any indicator blindly. You'll need to use some other validation tool like cash market internals to ensure you are reading the market clearly.
Today's Economic Calendar
10:00 AM Consumer Sentiment
01:00 PM Baker-Hughes Rig Count
Link for Updates (Check it during RTH session)
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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