Outlook 01/03: U.S. stock futures were sharply lower Friday after the U.S. confirmed that an airstrike killed Iran’s top military commander, sending oil prices surging and hiking geopolitical concerns. This afternoon, the Fed will publish the minutes from its December meeting, when it held interest rates after three cuts earlier in the year. The release may shine some light on what central bankers are thinking about the repo market, where the Fed has been active over the last several months in an effort to control overnight interest rates.
/ESH20 Value: YVAH 3252 YPOC 3249 YVAL 3239 GAP 3259.25
/ES Plan: Last session market closed balanced, but overnight looks more bearish (PBT 3184), moving below yesterday's range, so these're the options for today's regular trading session:
A) If market remains below LIS HVE 3230 with bearish internals, sell towards HVE 3222 ONL-HVE 3206 PBT 3200 and HVE 3189.
B) If market moves above LIS HVE 3230 with bullish internals, buy towards YVAL 3239 HVE 3254 GAP 3259.25 and ATH 3263.50
Note: Overnight inventory is 100% bearish. The expected action is a counter-auction relative to overnight inventory; failure to see the counter-auction would be an indication of a potential trend day. Remember that record highs printed overnight, should be revisited at regular trading hours. Iran's SoC magnet zone will be on the radar.
Today's Economic Calendar
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
11:05 Fed's Barkin Speech
01:00 PM Baker-Hughes Rig Count
01:15 PM Fed's Evans Speech
01:15 PM Fed's Brainard Speech
02:00 PM FOMC minutes
03:30 PM Fed's Kaplan Speech
01:15 PM Fed's Williams Speech on Sunday
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