Outlook 11/29: Fed Chair Janet Yellen will update Congress today on her economic outlook, just two weeks before the central bank is widely expected to raise rates for the third time this year. Topics may include why inflation has remained persistently below the Fed's target rate and how that will shape the future path of monetary policy. It will likely be Yellen's last appearance before lawmakers, as Jerome Powell is set to take over as leader early next year.
/ES Value: YVAH 2627 YPOC 2625.75 YVAL 2610
/ES Plan: Yesterday market closed leaving a bullish imbalanced and printing new record high 2627 after Senate Budget Committee approved the Republican tax bill, a crucial procedural step toward a vote by the full chamber later this week. Overnight inventory is balanced, moving within Yesterday's value, but we've a new record high, pending to be visited on regular trading hours, so we've these options:
A) If market remains above YPOC 2625.75 with bullish internals, try to be a buyer leaning on 2625-2627.50 towards ONH 2629.75 and GBT 2654. Failure to breakdown ONL early is a signal of a strength.
B) If market starts to move below YPOC 2625.75 with bearish internals, try to be a seller leaning on 2627-2625 towards ONL 2623.50 and YVAL 2610. Failure to take out ONH early is a signal of weakness.
Tips: Watching at the bigger picture, market shows decent excess on these highs. Usually, market needs an excess high to call an end to the current bullish auction, but don't try to be a seller against the current bullish trend until steps of the ladder are broken (LVNs 2625-21-15).
Today's Economic Calendar
10:00 AM Pending Home Sales
10:00 AM Yellen testimony
10:30 AM EIA Crude Inventories
01:50 PM Fed's Williams Speech
02:00 PM Fed's Beige Book
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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