Outlook 06/17: U.S. stock futures suggested the market would continue to move higher on Wednesday, following a big rally in the previous session that was fueled by a growing belief the worst may be over for the world’s largest economy. The Fed's moves to backstop credit markets, combined with a rebound in U.S. retail sales and prospects for COVID-19 treatment dexamethasone appear to have put a floor under equities. In his semi-annual monetary policy report, Fed Chair Jay Powell told lawmakers on Tuesday that the path to recovery remained uncertain and he'll testify for a second day today before the House.
/ESU20 Value: YVAH 3135 YPOC 3114 YVAL 3097 GAP 3116.50
/ES Plan: Last session market closed balanced, but overnight looks more bullish, still moving within yesterday's value, so these are the initial balance options for today's opening:
A) If market moves above LIS HVE 3133 with bullish internals, buy towards ONH 3147 HVE 3160-3177-3189-3207.
B) If market moves below LIS HVE 3133 with bearish internals, sell towards HVE 3116 ONL 3096.50 and and GAP 3062.
Note: Overnight inventory is bullish but market opens within previous value area, a signal of balanced market. Trading from responsive versus initiative would be preferred, so don't be 'too anxious' to trade early. If we're within value we want to have some patience until market breaks.
Market Movers
10:30 EIA Petroleum Inventories
12:00 PM Powell Testify before the House
01:00 PM 20-Year Bond Auction
04:00 PM Fed's Mester speech
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