Outlook 12/20: U.S. stock index futures are heading higher, after the Senate approved the tax reform bill on a 51-48 vote in the wee hours of Wednesday morning. The measure will now head back to the House, which had cleared it on Tuesday, following news that lawmakers violated a Senate procedural measure called the Byrd Rule. The green light will send the bill to President Trump to sign into law, sealing his first major legislative victory in office.
/ES Value: YVAH 2691 YPOC 2686.50 YVAL 2685
/ES Plan: Yesterday market closed leaving a bearish 'b' shape (PBT 2675). Overnight inventory is bullish (GBT 2700), moving above yesterday's value, so as usual we've these options:
A) If market remains below LVN 2693 with bearish internals, try to be a seller leaning on 2693-2692 towards LVN 2688 ONL 2684.25 GAP 2682 LVN 2679. Failure to take out ONH early is a signal of weakness.
B) If market starts to move above LVN 2693 with bullish internals, try to be a buyer leaning on 2693-2692 towards ATH 2698 GBT 2700 PBT 2702. Failure to breakdown LVN 2688 early is a signal of a strength.
Tips: Watching at the bigger picture, 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.
Today's Economic Calendar
10:00 AM Existing Home Sales
10:30 AM EIA Oil Inventories
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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