*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 long
Inside Day/Outside Day: Inside
Location of price relative to market profile:Near value area high
Notable overnight futures markets changes:
Up:NG (Nat Gas), HO (Heating Oil), ZO (Oats), CT (Cotton), CL (Crude Oil)
Down: SI (Silver), PL (Platinum), NKD (Nikkei), SB (Sugar), ZL (Soybean Oil), HG (Copper)
News for the day:
Factory Orders: 10:00a
ISM Non-Mfg Index: 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: Bearish traders who believe in a regression to the mean strategy continue to search for areas to short this market, be it with macro news or technical levels. While 2013 was a calendar year for the bulls, a pullback of some degree is likely. This week provides news catalysts that should drive the markets with the Fed minutes on Wednesday and the monthly jobs report on Friday. Despite the selloff on Thursday, the value areas from Thursday/Friday were parallel, which is a bullish sign that buyers were supporting the level. As a result, the natural level to watch on the tape if there is any selling is Friday's low of 1823 to determine if the large traders are propping the market. The ES is set to open inside value area which typically shows more two way trading. However, given the buying that had occurred during the Euro session, the trend continues to be up until proven otherwise. Intraday bias is neutral/up.
ES Daily Trend: Bullish
ES Weekly Trend: Strongly Bullish
ES Monthly Trend: Strongly Bullish
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