Daily Outlook
Prior Day Market Sentiment: Bullish
Overnight Inventory Change: Net long
Inside Day/Outside Day: Inside
Location of price relative to market profile: Above value area
Notable overnight futures markets changes:
Up: ZS (Soybeans), ZL (Soybean Oil), ZW (Wheat), NG (Nat Gas), ZM (Soybean Meal)
Down:KC (Coffee), SI (Silver), ZO (Oats), HG (Copper)
News for the day:
Petroleum Status Report: 10:30a
FOMC Minutes: 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: The two strongest emotions that an investor feels is fear and greed. For the majority of 2013 and 2014, the large institutions and hedge funds have been absorbing the low interest rates set by the Fed and have driven the S&P to all-time highs. At the same time, when the selloff does occur, the higher probability is for the market to give back the profits quicker on the way down than on the way up as they look to preserve as much capital as possible. Given the wide range red candles the past couple of days and above average volume the velocity for the bearish case is starting to accelerate. FOMC minutes are set to be announced at 2pm today and it is setting up to be a pivotal event. If the news is less than what the street is expecting than the liquidation could continue as the sellers look to build momentum. The key level remains the high volume node from 1830-1835. The ES is currently trading above it in the premarket and the level should be on alert when the market opens for business. Intraday edge is neutral/bullish.
ES Daily Trend: Neutral/Bullish
ES Weekly Trend: Bullish
ES Monthly Trend: Bullish
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