Outlook 01/04: U.S. major indexes hit record closing highs with some support from the Federal Reserve's last minutes showing the U.S. central bank would likely stick to gradual interest rate hikes this year. They reiterated gradual rate increases, so that's steady as she goes, which the stock market seems to like.
/ES Value: YVAH 2713 YPOC 2711 YVAL 2706
/ES Plan: Yesterday market closed leaving a bullish profile (PBTs 2725-2732). Overnight inventory is balanced 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 2713 with bullish internals, try to be a buyer leaning on 2713 towards ONH and PBTs 2725-2732 Failure to breakdown YVAH early is a signal of a strength.
B) If market starts to move below YVAH 2713 with bearish internals, try to be a seller leaning on 2713 towards GAP 2710 and YVAL 2706 Failure to take out ONH early is a signal of weakness.
Note: Last record high shows some excess on it, but yesterday's profile still shows bullish imbalance, so we've to watch closely volume at prices on next record highs, looking for more excess (single prints).
Today's Economic Calendar
09:45 PMI Services Index
09:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
01:30 PM Fed's Bullard speech
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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