Outlook 10/17: Volatility is racking the markets as traders struggle to adapt to a world of reduced central-bank stimulus. Following a sharp rally on Tuesday, U.S. stock futures are pointing to a red open, ahead of more earnings and minutes from the FOMC's latest meeting in September. Some say the turbulence reflects the early stages of a rotation, or reallocating resources away from assets whose gains now appear at risk.
/ESZ18 Value: YVAH 2819 YPOC 2805 YVAL 2780
/ES Plan: Yesterday market closed bullish but overnight looks slight bearish, moving within Yesterday's value. We're moving into 2808-2796 auction range, so we've these options:
A) If market remains below HVE 2808 with bearish internals, sell towards ONL 2804 LVNs 2799-2789 YVAL 2780 and LVNs 2765-2760.
B) If market starts to move above 2808 with bullish internals, become a buyer towards YVAH 2819 ONH 2824.25 and HVEs 2826-2842.
Tips: Usually, after 10am ET data, the 1st half of each hour offers pullbacks and 2nd half follows the current trend. That's why I often wait for X:30am or X:30pm to take trades that follow trend.
Today's Economic Calendar
10:30 EIA Petroleum Inventories
12:10 PM Fed's Brainard Speech
02:00 PM FOMC minutes
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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