Outlook 12/15: U.S. stock index futures are set for a positive open as investors shake off concerns about the progress of U.S. tax reform. In the previous session, U.S. equities fell into the red by the close, with several Republican senators expressing last-minute doubts about the tax overhaul. The reservations come before a compromise plan set to be released by Congress today and final votes planned for early next week.
/ES Value: YVAH 2672 YPOC 2670 YVAL 2658
/ES Plan: Yesterday market closed bimodal (LIS 2662-61). Overnight inventory is balanced, moving within yesterday's value so as usual we've these options:
A) If market remains above LIS 2662-61 with bullish internals, try to be a buyer leaning on 2661-2662 towards LVN 2665-2669 and 2673. Failure to breakdown YVAL early is a signal of a strength.
B) If market starts to move below LIS 2662-61 with bearish internals, try to be a seller leaning on 2662-2661 towards LVNs 2658-2652 and 2645. Failure to take out ONH early is a signal of weakness.
Tips: One lesson from yesterday was "believe in cash internals bias", but I forgot a second lesson and that was "play small on narrow balanced ranges". Keep in mind these lessons and remember It's Friday, and quad witching. Don't try to make your week today.
Today's Economic Calendar
09:15 AM Industrial Production
10:00 AM Atlanta Fed's Expectations
01:00 PM Baker-Hughes Rig Count
04:00 PM Treasury International Capital
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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