Outlook 07/17: The spotlight will be on Fed Chair Jerome Powell this morning as he delivers his semi-annual monetary policy testimony on Capitol Hill. The questioning rarely breaks new ground, typically reviewing the Fed's recent policy statements and economic forecasts, but some inquiries may revolve around steps the Fed has taken to relax certain financial regulations. Markets are also paying attention to discussion on the yield curve, which compares long and short-term rates.
/ESU8 Value: YVAH 2802 YPOC 2799 YVAL 2797
/ES Plan: Yesterday closed balanced and Overnight shows a bearish profile (GBT 2784), moving below Yesterday's range, so we've these options:
A) If market remains below YLOD 2795 with bearish internals, try to sell leaning on 2795-2797 towards ONL 2790 HVE 2789 and GBT 2784. 'Look above and fail' is a bearish signal.
B) If market starts to move above YLOD 2795 with bullish internals, become a buyer above 2795 towards ONH 2781.50 and HVEs 2805-2809. 'Look below and fail' is a bullish 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
10:00 NAHB Housing Market Index
04:00 PM Treasury International Capital
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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