Outlook 08/01: The SP500 ended the session yesterday down -1.1%, snapping a 36-session streak in which the closing index didn't move more than 1% in either direction. The selloff was triggered by comments from Fed Chair Jerome Powell, which disappointed investors in his post-decision news conference when he didn’t more explicitly ratify expectations of additional stimulus in the months ahead. President Trump tweeted in response to the Fed's 25-basis point rate cut with little indication of which way the next move will be. "What the Market wanted to hear from Jay Powell and the Federal Reserve was that this was the beginning of a lengthy and aggressive rate-cutting cycle..."
/ESU19 Value: YVAH 3020 YPOC 3016 YVAL 2988 GAP 2978.75
/ES Plan: Yesterday market closed bearish but overnight look slight bullish (PBT 2998), moving below yesterday's value, so today's options:
A) If market remains above LIS HVE 2972 with bullish internals, buy towards ONH 2989.50 PBT 2998 HVEs 3006-3018 and GAP 3022.
B) If market moves below HVE LIS 2972 with bearish internals, sell towards ONL 2966.25 YLOD 2958 GAP 2954.75 and HVEs 2948-36.
Today's Economic Calendar
09:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:30 EIA Natural Gas Inventory
04:30 PM Money Supply
04:30 PM Fed Balance Sheet
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