Outlook 12/04: U.S. stocks markets rally on big tax victory. It's a strong beginning for the week after the U.S. Senate narrowly passed a major tax bill over the weekend. The GOP still needs to overcome future obstacles for the Senate and the House to craft a joint bill, which will then be presented to President Trump. A deal is hoped to be completed by Christmas.
/ES Value: YVAH 2648 YPOC 2642.25 YVAL 2630
/ES Plan: Market closed leaving a bullish imbalanced on Friday (PBT 2679). Overnight inventory is bullish, moving above Yesterday's value, printing new recod high (ON-ATH 2663.25), so we've these options:
A) If market remains above ONL 2654 with bullish internals, try to be a buyer leaning on 2656-2657 towards ONH 2663.25 and PBTs 2675-2679 Failure to breakdown ONL early is a signal of a strength.
B) If market starts to move below ONL 2654 with bearish internals, try to be a seller leaning on 2656-2654 towards YVAH 2648 and GAP 2642.75 Failure to take out ONH early is a signal of weakness.
Tips: Double digit gap down below overnight's range. Gap rules are in play: Larger gaps may not fill on the first day or may do so only partially. Double digit gaps often go nowhere and should be avoided early, because the market tends to chop a lot to digest new levels before moving more definitively later in the session.
Today's Economic Calendar
10:00 AM Factory Orders
12:30 PM TD Ameritrade IMX
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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