Outlook 08/07: U.S. stock futures look balanced after payrolls increased by 1.763 million in July and the unemployment rate fell to 10.2%. Both numbers were better than respective forecasts of 1.48 million and 10.6%. Even with a three-month gain of 9.3 million workers either newly hired or back to their jobs, the total employment level remained 12.9 million below its February level. Markets reacted little to the news, with stock market futures pointing to a slightly lower open and government bond yields mostly flat.
/ESU20 Value: YVAH 3329 YPOC 3317 YVAL 3306 GAP 3344.50
/ES Plan: Yesterday market closed bullish, but overnight looks more balanced, still moving a few ticks above yesterday's value, so these are the initial balance options for today's opening:
A) If market remains above LIS 3328 with bullish internals, buy towards HVE 3338 ONH 3347.25 and HVEs 3349-58.
B) If market moves below LIS 3328 with bearish internals, sell towards ONL 3323.25 HVE 3312 and GAP 3299.25.
Note: Overnight inventory is neutral but market opens a few ticks above previous value area. 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 is a strong tendency to rotate all the way through the value area.
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