Outlook 07/24: U.S. stock futures are higher, following a positive showing in overseas markets after financial and tech stocks helped snap a two-trading-day losing streak yesterday. Investors will be digesting corporate results that came out after Monday's close, including Google parent Alphabet, which tallied better than expected Q2 results that sent shares nearly 5% higher in after-hours trading.
/ESU8 Value: YVAH 2810 YPOC 2808 YVAL 2800
/ES Plan: Yesterday closed bullish (PBT 2820) and overnight auction filled that imbalance, moving above yesterday's value, so we've these options:
A) If market remains above ON-VAH 2820 with bullish internals, become a buyer above 2820 towards ONH 2824 HVE 2825 and PBT 2834. 'Look below and fail' is a bullish signal.
B) If market starts to move below ON-VAH 2820 with bearish internals, try to sell leaning on 2820 towards YHOD 2812 and YVAH 2810. 'Look above and fail' is a bearish 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
09:45 PMI Composite Flash
10:00 Richmond Fed Mfg.
01:00 PM 2-Year Note Auction
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
Questions? Just ask via email or twitter @verniman direct message.
