Thursday, February 20, 2014

Morning Update for Thursday, February 20th

Major Support/Resistance Levels- ES





Daily Outlook

Prior Day Market Sentiment: Bearish
Overnight Inventory Change:Net short
Inside Day/Outside Day:Inside
Location of price relative to market profile: Below value area
Notable overnight futures markets changes:
Up: ZO (Oats), ZL (Soybean Oil)
Down:KC (Coffee), NG (Nat Gas), NKD (Nikkei), SI (Silver), ZM (Soybean Meal), PL (Platinum), SB (Sugar), GC (Gold)



News for the day:

Consumer Price Index: 8:30a
Jobless Claims: 8:30a
PMI Manufacturing Index:  8:58a
Philly Fed Survey: 10:00a
Petroleum Status 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: It is important to think of price ranges as different levels of a building.  When prices penetrate one ceiling (resistance), it then becomes a floor (support).  This phenomenon occurred yesterday as the S&P came within two points of the all-time highs prior to selling off after the Fed minutes annoucement, creating a wide range candle on the daily chart. The selling has continued during the globex session with the first target is the 50 day moving average at 1809.  If there is buying at the open, profits should be taken at the value area low of 1831.25. Intraday edge to the bears.



Stock of the Day: Tesla Motors, Inc. (TSLA)- Earnings reported after the bell






ES Daily Trend: Neutral/Bullish






ES Weekly Trend:  Bullish





ES Monthly Trend:  Bullish 












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