Outlook 12/12: The FOMC will gather today for its last policy meeting of 2017, which many expect will result in interest rates getting bumped up by a quarter point on Wednesday. The wild card for the markets, however, is what the Fed says and does with regard to tax legislation. While many expect the central bank to retain its three-rate-hike forecast for next year, some feel the Fed could add a fourth rate hike based on the improving economy and stimulus from tax cuts.
/ES Value: YVAH 2662 YPOC 2660 YVAL 2656
/ES Plan: Yesterday market closed balanced. Overnight inventory is bullish, moving above yesterday's value and printing a new record high (ATH 2668), so as usual we've these options:
A) If market remains above YVAH 2662 with bullish internals, try to be a buyer leaning on 2662-2664 towards ONH-ATH 2668 and PBT 2675. Failure to breakdown ONL 2663.50 early is a signal of a strength.
B) If market starts to move below LVN 2662 with bearish internals, try to be a seller leaning on 2662-2663 towards YVAL 2656 and GAP 2654. Failure to take out ONH 2668 early is a signal of weakness.
Tips: Remember ATH 2668 has been made at Globex session, and we know that ATH printed in the overnight session has usually been revisited during regular trading hours.
Today's Economic Calendar
01:00 PM 30-Year Note Auction
02:00 PM Treasury Budget
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.
Questions? Just ask via email or twitter direct message.
