Outlook 07/23: In the week ahead, second quarter earnings season will kick into high gear as three of the four members of FANG stocks will report results. Netflix last week reported earnings that disappointed and shares of the streaming platform fell sharply, and this week all eyes will be on Google parent company Alphabet (reporting Monday), Facebook (reporting Wednesday), and Amazon (reporting Thursday). All three companies will release their results after the market close. Outside of the FANGs, there will be plenty of earnings action. 174 S&P 500 members are set to report results this week.
/ESU8 Value: YVAH 2808 YPOC 2804 YVAL 2802
/ES Plan: Yesterday closed bearish and ON filled that imbalance and looks balanced, moving below Friday's value, so we've these options:
A) If market remains below YVAL 2802 with bearish internals, try to sell leaning on 2802-2800 towards ONL 2792.50 HVE 2789 and LVN 2781. 'Look above and fail' is a bearish signal.
B) If market starts to move above YVAL 2802 with bullish internals, become a buyer above 2802 towards YVAH 2808 and GAP 2515.75 HVE 2819. 'Look below and fail' is a bullish signal.
Tips: I share this trading process everyday, using Volume Profile and Market Internals. First, define the Bull/Bear Line in the Sand (LIS).
Second, watch volume profile skew, and wait for a bullish 'p' or bearish 'b' imbalance. Third, watch ES VWAP slope, rising (bullish) or falling (bearish). Fourth, wait for a lean near LIS-VWAP-VAH-VAL. Best entry is as close as possible to these key levels. Finally, wait for ES price action and SPX internals correlation to confirm decisions about entries/exits.
Today's Economic Calendar
10:00 Existing Home Sales
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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