Outlook 02/26: U.S. stock markets calmed on Friday after the Fed said it saw steady economic growth continuing and no serious risks on the horizon, a trend that looks set to continue on Monday.
/ES Value: YVAH 2750 YPOC 2746 YVAL 2720
/ES Plan: On Friday market closed leaving bullish imbalance (PBT 2782). Overnight broke through the high of last week (2750) and held above it, so will be used as a line in the sand today:
A) If market remains above YVAH 2750 with bullish internals, try to be a buyer leaning on 2750-2754 towards ONH 2761.50 LVN 2765 PBT 2782. 'Look above and fail' is a signal of weakness.
B) If market starts to move below YVAH 2750 with bearish internals, try to be a seller leaning on 2750-2745 towards LVN 2734 and YVAL 2720. 'Look below and fail' is a signal of strength.
Tips: Market does appear to be calming down with depth of market (DOM) still around 200s contracts. A 'normal' orderbook usually shows 300-400s. If you can't trade using wide stops (10 pts), I recommend to trade 1/2 of your normal size until markets recover a 'normal' regime.
Today's Economic Calendar
10:00 New Home Sales
10:30 Dallas Fed Manufacturing Survey
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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