Outlook 02/09: U.S. stock futures shows little changed this morning after closing lower on Thursday. All eyes are on U.S. stock market, as prices make wild swings as they go lower. A selloff that accelerated late Thursday sent the SP500 down 3.8 percent, taking its slide since a Jan. 26 record past 10 percent, the accepted definition of a correction. Every time the market has tried to bounce back, we’ve seen ‘selling into the rebound’ and not ‘buying into the dip’. The roller-coaster ride is definitely not over yet.
/ES Value: YVAH 2674 YPOC 2631 YVAL 2617
/ES Plan: Yesterday closed balanced but within a lower range (2619-2586). Overnight is bimodal (LIS 2600) moving below Yesterday's value, so we've these options:
A) If market remains above LIS 2600 with bullish internals, try to be a buyer leaning on 2600-2608 towards ONH 2617 YPOC 2631 and YVAH 2674. 'Look above and fail' is a signal of weakness.
B) If market starts to move below LIS 2600 with bearish internals, try to be a seller leaning on 2600-2602 towards GAP 2590 and LVNs 2560-2541. 'Look below and fail' is a signal of strength.
Tips: Market is wild and thin again with the order book being below 100 at each level. If you can't trade using wide stops (15-30 pts), I recommend to stay aside until the markets stabilize and recover a 'normal' tradable regime (200 at each level)
Today's Economic Calendar
09:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
01:00 30-Year Note Auction
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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