Outlook 03/12: Markets are starting the week with a bounce after a strong U.S. jobs report seemed to erase any potential concerns investors may have had about a looming trade war or inflation. For most economists, Friday’s report confirmed that the Federal Reserve will raise interest rates in its March 21 policy statement, but this week’s data could give markets a sense of whether inflation pressures or a consumer spending boom could press the Fed to be more aggressive into the second half of 2018.
/ESM8 Value: YVAH 2792 YPOC 2785 YVAL 2765
/ES Plan: On Friday market closed leaving a bullish imbalance (PBT 2813 and GBT 2833). Overnight inventory is balanced moving a few ticks above Friday's value. As usual we've these options:
A) If market remains above YVAH 2792 with bullish internals, try to be a buyer leaning on 2792-93 towards ONH 2805 PBT 2813 and GBT 2833. 'Look above and fail' is a signal of weakness.
B) If market starts to move below YVAH 2792 with bearish internals, become a seller leaning on 2792 towards ONL 2788 YPOC 2785 and YVAL 2765. 'Look below and fail' is a signal of strength.
Today's Economic Calendar
01:00 PM 10-Year Note Auction
02:00 PM Treasury Budget
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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