Outlook 01/02: U.S. stock futures pointed to a higher opening on the first trading day of 2018, signaling a continuation of the solid run from last year. Major stock indexes closed out 2017 with their best year since 2013, lifted by a combination of strong economic growth, solid corporate earnings, low interest rates and hopes of corporate tax cuts.
/ES Value: YVAH 2690 YPOC 2685 YVAL 2677
/ES Plan: Last Friday market closed with bimodal profile (LIS 2681). Overnight is balanced moving within friday's value, so our options:
A) If market remains above LIS 2681 with bullish internals, try to be a buyer leaning on 2681-2683 towards YVAH 2690 and ATH 2698.25 Failure to breakdown LIS early is a signal of a strength.
B) If market starts to move below LIS 2681 with bearish internals, try to be a seller leaning on 2681-2680 towards YVAL 2677 and GAP 2673 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
9:45 PMI Manufacturing Index
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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