The Cloud Trader: Morning Update for Wednesday, March 5th

Major Support/Resistance Levels- ES

Daily Outlook

Prior Day Market Sentiment: Bullish
Overnight Inventory Change:Neutral
Inside Day/Outside Day:Inside
Location of price relative to market profile: Near value area high
Notable overnight futures markets changes:
Up: PA (Palladium), SB (Sugar), PL (Platinum)
Down: NG (Nat Gas), ZO (Oats), CT (Cotton)

News for the day:

ADP Employment Report: 8:15a
ISM Non- Mfg Index: 10:00a
Petroleum Status Report: 10:30a
Beige Book: 2:00p

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

Projected ES price action for the day: As the saying goes, "if it's too good to be true, it probably is." It doesn't always apply to the markets, however, when the bulls get euphoric. We are in that type of market right now and trading it the correct way can be used to your advantage. After Monday's selloff, not only did buyers make up all of losses, but the S&P made an all-time high yesterday. When looking under the hood at the market internals and comparing Monday's readings with Tuesday, the bullish activity was confirmed. On Monday, the AD line started at -1200 but moved higher to -500 (+700) during the course of the trading day, a sign that the bulls were starting to buy on a big red day. Yesterday, the AD line started above +1000 and was pegged there for the entire day, a sign of strength. The globex session has been neutral with all of the trading occurring inside of the value area. The key levels to watch will be value area high (1872) and the all-time high (1874.75). Intraday edge is neutral/bullish.

Stock of the Day: Chipotle Mexican Grill, Inc. (CMG)- All-time high made yesterday