Outlook 01/08: After the best start to a year in over a decade, U.S. major indexes are turning their focus to the fourth quarter earnings season, with results beginning to trickle in this week. Traders will be most afraid of the recent U.S. tax overhaul, as a one-time tax on repatriated foreign earnings and requisite revaluations of deferred taxes mean potential charges and writedowns.
/ES Value: YVAH 2738 YPOC 2734 YVAL 2727
/ES Plan: Market closed balanced on Friday. Overnight inventory is bimodal (LIS 2741) moving a few ticks above yesterday's value and printing a new record high that should be visited on the regular session, so as usual we've these options:
A) If market remains below LIS 2741 with bearish internals, try to be a seller leaning on 2741-2740 towards LVNs 2735-2728 Failure to breakdown ONL early is a signal of a strength.
B) If market starts to move above LIS 2741 with bullish internals, try to be a buyer leaning on 2741-2742 towards ONH and PBTs 2753 Failure to take out ONH early is a signal of weakness.
Today's Economic Calendar
12:30 PM TD Ameritrade IMX
12:40 PM Fed's Bostic Speech
01:35 PM Fed's Williams Speech
03:00 PM Consumer Credit
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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