Outlook 01/03: After a strong first day of the trading year, investors are set to digest data on auto sales and manufacturing activity, as well as the minutes from the latest Fed meeting. Market participants will be looking at whether the minutes address the prospects of additional rate tightening action in the coming months, and for any economic impacts from the new U.S. tax code.
/ES Value: YVAH 2695 YPOC 2690 YVAL 2686
/ES Plan: Yesterday market closed with bullish profile (PBT 2706). Overnight is bullish (GBT 2701.50) moving 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 above YVAH 2695 with bullish internals, try to be a buyer leaning on 2695-2696 towards ONH 2698.75 and PBTs 2702-2707 Failure to breakdown YVAH early is a signal of a strength.
B) If market starts to move below YVAH 2695 with bearish internals, try to be a seller leaning on 2695-2696 towards GAP 2693 and YVAL 2686 Failure to take out ONH early is a signal of weakness.
Note: Last record high doesn't show decent excess on it. This lack of excess increases the odds of the "End Year Rally", which covers the final week of the year and the first of the next. 2700 in sight.
Today's Economic Calendar
10:00 ISM Manufacturing Index
10:00 Construction Spending
02:00 PM FOMC minutes
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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