Outlook 12/28: Just two more days. That is all that is left on the trading calendar for 2017, capping what has been a stellar year for the Dow, SP500 and Nasdaq each set to score investors total returns of over 20%. On the other side, U.S. dollar reached its lowest level in a month versus the euro on Thursday as an earlier slide in Treasury yields and year-end rebalancing flows weighed on the currency that’s heading for its worst year in more than a decade.
/ES Value: YVAH 2690 YPOC 2689 YVAL 2684
/ES Plan: Yesterday market closed leaving a bimodal profile (LIS 2687). Overnight inventory is bullish (GBT 2690), moving within yesterday's value, so as usual, we've these A and B options:
A) If market remains above LIS 2687 with bullish internals, try to be a buyer leaning on 2687-2688 towards GBT 2690 LVN 2693 ATH 2698 and PBT 2702. Failure to breakdown ONL early is a signal of a strength.
B) If market starts to move below LIS 2687 with bearish internals, try to be a seller leaning on 2687-2686 towards YVAL 2684 and LVNs 2679-2675. Failure to take out ONH early is a signal of weakness.
Note: Last record high doesn't show decent excess on it. Usually, market needs an excess high to call an end to the current bullish auction. This lack of excess increases the odds that, soon or later, the all time high (ATH 2698) will be revisited. "Santa Claus Rally", which covers the final five days of the year and the first two of the next, is still on the radar.
Today's Economic Calendar
09:45 Bloomberg Consumer Index
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
01:00 PM 7-Year Note Auction
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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