*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 short
Inside Day/Outside Day: Outside
Location of price relative to market profile:Below value area
Notable overnight futures markets changes:
Up:NG (Nat Gas), CC (Cocoa), SI (Silver), KC (Coffee), 6S (Soybeans), ZW (Wheat), ZL (Soybean Oil), ZC (Corn), 6E (Euro), GC (Gold)
Down: NKD (Nikkei), 6A (Aussie Dollar), ZO (Oats), HG (Copper), 6C (Canadian Dollar), PA (Palladium)
News for the day:
Jobless Claims: 8:30a
PMI Manufacturing Index: 8:58a
Existing Home Sales: 10:00a
Petroleum Report: 11:00a
*Red highlight means the news is a market moving event;
yellow highlight means the news merits attention
Projected ES price action for the day: Today's theme for trading is patience. Yesterday saw yet another balancing day in the markets together with a decrease in volatility, meaning that the markets are in a holding pattern. What this signals for intraday trading is that the wise play is to set smaller profit targets and stops. On a 24 hour chart, the ES has triple topped at 1844 and is the level to watch if there is longer term buying activity. However, at this point, the market has sold off outside of yesterday's range which is a bearish sign. The bulls will look to buy on the dips and bring prices back inside of the daily range, making the previous day low of 1835 a signficant point of reference. If there is continued selling, then the bottom of the high volume range of 1825 will be the natural profit target to the short side. At this point, intraday bias is bearish and longer term bias is bullish.
ES Daily Trend: Bullish
ES Weekly Trend: Strongly Bullish
ES Monthly Trend: Strongly Bullish
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