Outlook 07/11: U.S. stock index futures are extending gains by a modest 0.2%. Jerome Powell's congressional testimony merely underlined the Fed case for easing policy to insure against the economic effects of a trade war and sub-target inflation, it was enough to get futures markets back pricing in a 1-in-4 chance of 50 bps cut later this month. Powell is back in the spotlight today, testifying before the Senate Banking Committee and likely emphasizing his dovish outlook.
/ESU19 Value: YVAH 3003 YPOC 2997 YVAL 2993 GAP 2997.50
/ES Plan: Yesterday market closed leaving a bullish imbalance but overnight profile looks balanced, moving above yesterday's value, so these're today's options:
A) If market remains above LIS 3000 with bullish internals, buy towards ONH 3006.75 ATH 3007.50 and PBT 3019.
B) If market moves below LIS 3000 with bearish internals, sell towards GAP 2997.25 ONL 2995.25 and GAP 2985.25
Tips: The more times a key level is tested, the weaker it becomes.
Today's Economic Calendar
10:00 Powell testimony
10:30 EIA Natural Gas Inventory
11:00 Fed's Williams Speech
01:00 PM 30-Year Note Auction
01:30 PM Fed's Williams Speech
01:30 PM Fed’s Quarles Speech
02:00 PM Treasury Budget
04:30 PM Fed Balance Sheet
Questions via @verniman direct message (RTH) or email (After Close).
Glossary of terms
