*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)
Daily Outlook
Prior Day Market Sentiment: Bearish
Overnight Inventory Change: Net short
Inside Day/Outside Day: Inside
Location of price relative to market profile:Between POC & value area low
Notable overnight futures markets changes:
Up: ZC (Corn), NG (Nat Gas), ZS (Soybean)
Down: SI (Silver), NKD (Nikkei), GC (Gold), HG (Copper), 6E(Euro)
News for the day:
Jobless Claims: 8:30a
Chicago PMI: 9:45a
*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention
Projected ES price action for the day: It goes to show that what is important is not the news itself, but the market's reaction to the news. Despite the expected announcement that the Fed would continue it's current policy and not begin tapering until March, the markets sold off dramatically during the 2pm hour yesterday, creating a wide value area. Therefore, the key levels to watch will be the value area high (1766.75) and value area low (1756.25). Typically, when there is a wide value area, there is a high probability for a bounce off of the levels especially if the pace of tape is slower at the market open. Anything inside value can be considered neutral price activity and should be traded accordingly.
ES Daily Trend: Bullish
ES Weekly Trend: Strongly Bullish
ES Monthly Trend: Strongly Bullish
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