Outlook 08/05: U.S. stock futures are looking to extend gains as traders await progress from Washington on a new coronavirus aid package. Better-than-expected earnings from Disney are also helping sentiment, while closely-watched Moderna will report before the opening bell. On the trade front, reports suggest that U.S. trade representative Robert Lighthizer and Chinese Vice Premier Liu will meet in mid-August to discuss the Phase One trade deal between the U.S. and China.
/ESU20 Value: YVAH 3296 YPOC 3291 YVAL 3283 GAP 3299.25
/ES Plan: Yesterday market closed bullish, and overnight continues on that way (PBT 3342), moving above yesterday's range, so these are the initial balance options for today's opening:
A) If market remains above LIS 3312 with bullish internals, buy towards ONH 3321.75 HVE 3328 and GAP 3340.
B) If market moves below LIS 3312 with bearish internals, sell towards GAP 3299.25 ONL 3292 and HVE 3280.
Note: When market opens and remains above previous value area high, it is 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 is a strong tendency to rotate all the way through the value area.
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9:45 PMI Services Index
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10:30 EIA Petroleum Inventories
5:00 PM Fed's Mester speech
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