Outlook 08/10: Friday come with the July consumer price index (CPI) report. U.S. consumer prices rose in July and the underlying trend continued to strengthen. The data pointed to a steady increase in inflation pressures that keeps the Fed on track to gradually raise interest rates.
/ESU8 Value: YVAH 2861 YPOC 2859 YVAL 2856
/ES Plan: Yesterday market closed bullish but overnight looks bearish (GBT 2830), moving below yesterday's range, so we've these options:
A) If market remains below HVE 2845 with bearish internals, try to sell leaning on 2845 towards ONL 2836.75 HVE 2832 GBT 2830 and LVN 2830. 'Look above and fail' is a bearish signal.
B) If market starts to move above HVE 2845 with bullish internals, become a buyer above 2845 towards ONL 2852.75 GAP 2853.50 and YVAL 2856. 'Look below and fail' is a bullish signal.
Tips: Summer time. Trade the first 2 hours for liquidity. Keep in mind RTH timeline, 10am ET data, Initial Balance, European close, Bonds close. Usually, after 10am ET data, the 1st half of each hour offers pullbacks and 2nd half follows the current trend.
Today's Economic Calendar
1:00 PM Baker-Hughes Rig Count
2:00 PM Treasury Budget
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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