Outlook 08/04: U.S. stock futures fell overnight, giving back some of the big gains. Democratic leaders and White House officials are still at odds over a new coronavirus aid package. While the two sides have agreed on another round of stimulus checks, they remain deadlocked on whether to cut a $600-a-week federal jobless supplement.
/ESU20 Value: YVAH 3293 YPOC 3288 YVAL 3281 GAP 3288.25
/ES Plan: Yesterday market closed bullish (PBT 3322), but overnight looks slight bearish (PBT 3261), moving below yesterday's value, so these are the initial balance options for today's opening:
A) If market remains below LIS 3280 with bearish internals, sell towards ONL 3271 GAP 3263 and HVE 3255.
B) If market moves above LIS 3280 with bullish internals, buy towards GAP 3288.25 ONH 3298 and HVE 3312.
Note: When market opens and remains below previous value area low, it is a clearly bearish signal. But when a market opens below value 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.
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