Outlook 12/17: U.S. stock index futures are pointing to a lower open following the worst start to a December since 1980. Major indexes fell more than 5% last week and Friday marked the first time since March 2016 that all major indexes closed in correction territory. The spotlight is on U.S. policymakers on the week ahead. On Tuesday and Wednesday, the Federal Reserve’s Federal Open Market Committee meets to decide the direction of monetary policy. Most economists expect the committee to hike interest rates, while scaling back its outlook for rate hikes for 2019. Meanwhile, U.S. legislators have until Friday to agree on spending policy so that the government can avoid a shutdown.
/ESH19 Value: YVAH 2625 YPOC 2606 YVAL 2599 GAP 2605.25
/ES Plan: On Friday market closed bearish (PBT 2560) and overnight continues on the same way, moving below previous value, into 2620-2586 range, so we've these options:
A) If market remains below YVAL 2599 with bearish internals, be a seller towards HVEs 2586-2562 and PBT 2560.
B) If market starts to move above 2599 with bullish internals, buy towards GAP 2605 ONH 2616.75 and HVE 2620.
Tips: Pace of the Roll now is around 55%. As March contract shows more volume than December, I start trading /ESH19. Usually rollover days show big divergences between Stocks vs. Futures, so setups that usually work well, may fail completely. Be cautious until Friday expiration.
Today's Economic Calendar
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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