Outlook 07/07: U.S. stock futures have paused their strong rally, off 0.8% in early trade following a gain of 1.6% on Monday. Boosting the index were technology and consumer stocks, while the June ISM Non-Manufacturing Index not only jumped back into expansion territory, but the 57.1 print heavily beat the consensus forecast. The U.S. is "still knee deep in the first wave" of the coronavirus pandemic, warned Dr. Anthony Fauci, adding that immunity may be "finite" and a vaccine might require a booster to prolong protection.
/ESU20 Value: YVAH 3170 YPOC 3165 YVAL 3160 GAP 3171.25
/ES Plan: Yesterday market closed bullish (PBT 3207), 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 HVE 3160 with bearish internals, sell towards HVE 3138 HVE 3116 and GAP 3102.50
B) If market moves above LIS HVE 3160 with bullish internals, buy towards HVE 3177 ONH 3184 and HVEs 3189-3207.
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 Job Openings and Labor Turnover Survey
01:00 PM 3-Year Note Auction
01:00 PM Fed’s Quarles Speech
02:00 PM Fed's Barkin Speech
02:00 PM Fed's Daly Speech
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.
