Outlook 07/27: U.S. stock futures are on the rise alongside safe-haven assets ahead of an upcoming Fed meeting that will yield clues on what comes next for monetary policy. SP500 futures advanced 0.4% overnight after Republicans finalized a bill for about $1T in coronavirus relief funds, while administration officials touted a 'V-shaped' economic recovery. The first print of U.S. GDP for Q2 is also due this week, while investors will digest earnings from Big Tech heavyweights. On the coronavirus front, reported cases and fatalities fell in many states hit hard by COVID-19, including Florida, Arizona, California, Texas and NY.
/ESU20 Value: YVAH 3214 YPOC 3208 YVAL 3201 GAP 3203.25
/ES Plan: Last session market closed bearish (PBT 3177), but overnight looks more bullish (PBT 3249), moving above yesterday's value, so these are the initial balance options for today's opening:
A) If market remains above LIS YVAH 3214 with bullish internals, buy towards HVE 3221 ONH 3223 GAP 3226 and HVE 3231.
B) If market moves below LIS YVAH 3214 with bearish internals, sell towards HVE 3207 GAP 3203 YVAL 3201 and ONL 3192.
Note: When market opens and remains above previous value area high, it's a clearly bullish signal. But when a market opens above value but then fails to go through the overnight high and begins to trade back into value with volume at lows increasing, it is a signal of reversal. There's a strong tendency to rotate all the way through the value area (VAR).
Market Movers
10:30 Dallas Fed Manufacturing Survey
11:30 2-Year Note Auction
1:00 PM 5-Year Note Auction
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