Outlook 10/29: U.S. stock futures were pointing to a slightly lower Tuesday open, following a new record high for the SP500. The rise was propelled by expectations of a third consecutive rate cut from the Federal Reserve, which has started a program to purchase $60B/month in Treasury bills until the end of 2019 and took the extraordinary action to shore up overnight liquidity starting in September. Trade optimism is also in the air after the USTR said Washington will consider extending certain tariff exclusions on $34B worth of imports from China.
/ESZ19 Value: YVAH 3041 YPOC 3039 YVAL 3036 GAP 3036
/ES Plan: Last session market closed bullish (PBT 3054) but overnight looks more bimodal (LIS 3036), moving below Yesterday's value, so:
A) If market remains below LIS YVAL 3036 with bearish internals, sell towards ONL 3029.50 and HVEs 3025-3019.
B) If market moves above LIS YVAL 3036 with bullish internals, buy towards ONH 3040.75 ATH 3042.75 and PBT 3054.
Tips: Watching at the bigger picture, last record high shows decent excess. When an excess high appears after a market has moved up for some time, it can be a signal that the recent up auction is over.
Today's Economic Calendar
10:00 Consumer Confidence
10:00 Pending Home Sales
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