Outlook 06/11: U.S. stock index futures are taking another turn for the worse as investors cash out of an extraordinary rally following the latest comments from Fed Chair Jerome Powell. While he vowed to continue aggressive stimulus "and keep interest rates near zero for years," he struck a cautious note on jobs, undercutting the hopes for a V-shaped recovery. "My assumption is that there will be a significant chunk, well, well into the millions of people who don’t get to go back to their old jobs and there may not be a job in that industry for them for some time. It could be some years before we get back to those people finding jobs."
/ESM20 Value: YVAH 3207 YPOC 3195 YVAL 3185 GAP 3185.25
/ES Plan: Last session market closed bearish, and overnight continues on that way, moving below yesterday's range, so these are the initial balance options for today's opening:
A) If market remains below LIS HVE 3115 with bearish internals, sell towards HVE 3090 GAP 3076 and HVE 3062.
B) If market moves above LIS HVE 3115 with bullish internals, buy towards HVE 3133-3160-3177 and ONH 3188.50
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. Rollover starts. Pace of the Roll now is around 20%. I'm still quoting /ESM20 until new /ESU20 increases volume. Usually rollover days show big divergences, so traditional setups may fail completely.
Market Movers
10:00 Quarterly Services Report
10:30 EIA Natural Gas Inventory
1:00 PM 30-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Questions via @verniman direct message (RTH) or email (After Close).
Follow alerts using TweetDeck. Primary twitter language is English.
No unauthorized reproduction of this service without permission.
