Outlook 07/18: Fed Chair Jerome Powell heads back to Capitol Hill today to give his semi-annual monetary policy testimony before the House Financial Services Committee. Yesterday, he stuck to an upbeat assessment on the U.S. economy while downplaying the impact of global trade risks on upcoming rate rises.
/ESU8 Value: YVAH 2815 YPOC 2812 YVAL 2802
/ES Plan: Yesterday closed bullish (PBT 2833) and Overnight looks balanced, moving within Yesterday's range, so we've these options:
A) If market remains above LIS 2809 with bullish internals, become a buyer above 2809 towards ONH 2816.50 PBT 2818 HVE 2825 and PBT 2833. 'Look below and fail' is a bullish signal.
B) If market starts to move below LIS 2809 with bearish internals, try to sell leaning on 2809 towards ONL 2807.50 LVN 2802 and HVE 2795. 'Look above and fail' is a bearish signal.
Tips: Line in the Sand (LIS) remains valid during the Initial Balance (1st RTH Hour), then RTH VWAP comes into play as dinamic Bull/Bear Line. Best entry location is as close as possible to that Bull/Bear line. Just wait for ES price action and SP internals convergence to take a trade.
Today's Economic Calendar
10:00 Jerome Powell testimony
10:30 EIA Petroleum Inventories
02:00 PM Fed's Beige Book
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.
