Outlook 11/07: U.S. stock index futures are pointing to a strong opening on Wall Street after the baseline consensus forecast for U.S. midterm elections proved correct as Democrats won control of the House, while the GOP hung on to the Senate. History has shown that mixed party control is generally the best combination for equity markets, while the highest-growth stocks can keep putting up terrific numbers even during an economic slowdown. Regardless of the election’s outcome, the SP500 Index has been positive during the 12 months following the midterm election 18 straight times going back to 1946.
/ESZ18 Value: YVAH 2751 YPOC 2747 YVAL 2742
/ES Plan: Yesterday market closed bullish waiting for midterm election results. Overnight edge higher as election results come in as expected, moving within 2765-2783 range on a bimodal profile (LIS 2775), so we've these options:
A) If market remains above LVN-LIS 2775 with bullish internals, become a buyer towards HVE 2783 ONH 2787 and HVEs 2796-2808.
B) If market starts to move below LIS 2775 with bearish internals, sell towards HVE 2765 GAP 2759.25 YVAH 2751 and ONL 2744.
Tips: Double digit gap above yesterday's close. Larger gaps may not fill on the first day or may do so only partially. Today is a news-driven day. If market becomes wild and thin, stay aside until market calms down.
Today's Economic Calendar
09:00 FOMC meeting begins
10:30 EIA Petroleum Inventories
01:00 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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