The Cloud Trader: Morning Update (7/25/13)

Thursday, July 25, 2013

Morning Update (7/25/13)

Major Support/Resistance Levels- ES

*Highlighted region(s) denote strong area(s) of support/resistance

Daily Outlook

Prior Day Market Sentiment: Bearish
Overnight Inventory Change:Net short
Inside Day/Outside Day:Outside
Location of price relative to market profile: Below value area
Notable overnight futures markets changes:
Up:SB
Down:NKD, ZS, HO, HG, CL, SI, ZO, GC, TF, YM, NQ, ES

News for the day:

Durable Goods: 8:30a
Jobless Claims: 8:30a

*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention

Projected ES price action for the day: Prices are set to open below the value area and the previous day's low. It will be important to see if the bulls step in and continue to prop up prices. Yesterday was the first time in a while where there was some semblance of a selloff and the bears will look to gain steam as prices pull back from the all-time highs. As a result, the previous day's low (1677.25) will be the key level. If prices are accepted above, then the bulls will be lifting the offer and build value in yesterday's range. However, if prices can clear last week's low & monthly pivot at 1666.5 then the bears will have it for the day.