The Cloud Trader: Morning Update (8/1/13)

Thursday, August 1, 2013

Morning Update (8/1/13)

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment:Neutral
Overnight Inventory Change:Net long
Inside Day/Outside Day:Inside
Location of price relative to market profile: Above value area
Notable overnight futures markets changes:
Up:NKD, CL, GC, DX, ES, TF, YM, NQ, SI
Down:6J, ZC, 6E

News for the day:

Jobless Claims: 8:30a
PMI Manufacturing Index: 8:58a
ISM Manufacturing Index: 10:00a
Construction Spending: 10:00a

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

Projected ES price action for the day: Markets are set to open significantly higher after yesterday's FOMC meeting where interest rates were left unchanged but resulted in a lower 10-year treasury rate. Despite the large up move during the overnight session, prices are still within yesterday's range at the time of this writing. As a result, a key area will be 1694-1696. If prices trade above and are accepted higher than the bulls will be propping up the markets and the higher probability is for prices to move higher. Otherwise, if the ES returns into yesterday's range then prices should test the value area levels (1690.75 & 1683.75).