Outlook 07/16: U.S. stock futures are sliding after a vaccine-induced rally. On the U.S. economic calendar, the weekly jobless claims number came in slightly worst than expected. The Labor Department said a total of 1.30 million Americans filed for unemployment benefits last week, compared to Dow Jones estimates of 1.25 million first-time filers. Meanwhile, retail sales jumped 7.5% in June, topping expectations of a 5.2% increase per Dow Jones. This reading came after May’s 17.7% surge, which blew past estimates and was the largest reading on record.
/ESU20 Value: YVAH 3221 YPOC 3215 YVAL 3205 GAP 3220
/ES Plan: Yesterday market closed balanced, but overnight looks more bearish, moving below yesterday's value, so these are the initial balance options for today's opening:
A) If market remains below LIS YVAL-HVE 3205-3207 with bearish internals, sell towards ONL 3188.50 GAP 3183 and HVEs 3177-3159.
B) If market moves above LIS YVAL-HVE 3205-3207 with bullish internals, buy towards YVAH-GAP-HVE 3220 ONH 3228.50 and HVE 3255.
Note: When the market opens below the value area and remains below the value area low on the subsequent tests, it is a clearly bearish signal. But when a market opens below the value area but then fails to go through the overnight low and begins to trade back into value with volume at highs increasing, it is a signal of reversal. There is a strong tendency to rotate all the way through the value area.
Market Movers
10:00 Business Inventories
10:00 NAHB Housing Market Index
10:30 EIA Natural Gas Inventory
11:10 Fed's Williams Speech
12:00 PM Fed's Bostic Speech
1:30 PM Fed's Evans Speech
2:00 PM Fed's Bostic Speech
4:00 PM Treasury International Capital
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
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