Outlook 05/03: The Federal Reserve held interest rates steady after its two-day policy meeting and said it will monitor inflation. The policy-making committee used the word "symmetric" twice in relation to its inflation target, in a potential cue to bond traders that a small overshoot past the 2% inflation target will be tolerated. The Fed noted that risks to the economic outlook are roughly balanced. The FOMC statement reinforced market expectation for another 25 basis points rate rise in its June meeting.
/ESM8 Value: YVAH 2656 YPOC 2647 YVAL 2641
/ES Plan: Yesterday market closed bimodal (LIS 2636) and overnight profile shows another bimodal profile (LIS 2627), moving below Yesterday's value, so we've these options:
A) If market remains below LIS-YLOD 2627 with bearish internals, become a seller leaning on 2627-2623 towards ONL 2617 LVN 2600 and HVE 2586. 'Look above and fail' is a signal of weakness.
B) If market starts to move above LIS-YLOD 2627 with bullish internals, be a buyer leaning on 2627 towards ONH 2636.25 YVAL 2641 and YPOC 2647. 'Look below and fail' is a signal of strength.
Tips: Consider the habits of the product you trade, such as '10 Handle Rule' 'Value Area Rule' and 'One Tick Failure'. More on Glossary.
Today's Economic Calendar
09:45 Bloomberg Consumer Comfort Index
09:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:00 Factory Orders
10:30 EIA Natural Gas Inventory
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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