Outlook 08/19: U.S. stock futures looking to hit a new record with stimulus in focus and the Fed keeping rates low, which support higher valuations. The index had a modest gain yesterday that pushed near a new record. Futures are flat today aiming to hit a new record. Possible support of the move is the stimulus deal with top Congressional Democrats yesterday signaling a willingness for further compromise, and the White House this morning optimistic about the chance to quickly pass a slimmed-down deal.
/ESU20 Value: YVAH 3388 YPOC 3385 YVAL 3379 GAP 3386.25
/ES Plan: Yesterday market closed bullish (PBT 3406), and overnight continues on that way (PBT 3399), moving a few ticks above yesterday's value, so these are the initial balance options for today's opening:
A) If market moves above LIS HVE 3388 with bullish internals, buy towards ONH 3393.75 ATH 3397.50 and PBT 3406.
B) If market moves below LIS HVE 3388 with bearish internals, sell towards ONL 3383.25 YVAL 3379 and GAP 3362.
Note: Overnight inventory is neutral market opens above previous value area. When a market opens above value but then fails to go through the overnight high, there's a strong tendency to re-test the value area. Remember that last record high has been printed overnight, so it's still pending to be revisited at regular trading hours.
Market Movers
10:00 Quarterly Services Report
10:30 EIA Petroleum Inventories
01:00 PM 20-Year Bond Auction
02:00 PM FOMC minutes
03:00 PM Fed's Barkin Speech
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