Outlook 09/13: On Thursday, investors get key inflation data with the August report on consumer prices. US Consumer Price Index rose 0.2% in Aug, vs 0.3% increase expected. Despite the moderation in price increases last month, inflation pressures are steadily building up, driven by a tightening labor market and robust economic growth. FED Minutes published last month showed "several participants commented that increases in the prices of particular goods, such as those induced by the tariff increases, would likely be one source of short-term upward pressure on the inflation rate". The Fed is expected to raise interest rates at its Sept. 25-26 policy meeting.
/ESU8 Value: YVAH 2891 YPOC 2888.75 YVAL 2884
/ES Plan: Yesterday market closed balanced but overnight looks bullish (GBT 2905), moving above yesterday's range, so we've these options:
A) If market remains above YHOD 2895 with bullish internals, become a buyer towards ONH 2900.25 GBT 2905 GAP 2908.25 and PBT 2912. 'Look above and fail' is a bearish signal.
B) If market starts to move below YHOD with bearish internals, try to sell towards YVAH 2891 GAP 2888.75 ONL 2884.75 and YLOD 2880. 'Look below and fail' is a bullish signal.
Tips: Today's rollover day. Pace of the Roll now is around 30%. I'm still quoting old contract until new /ESZ8 shows equal volume of /ESU8.
Today's Economic Calendar
10:30 EIA Natural Gas Inventory
12:30 PM Fed's Bostic speech
01:00 PM 30-Year Note Auction
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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