Wednesday, May 7, 2014

Morning Update for Wednesday, May 7th

Major Support/Resistance Levels- ES




Daily Outlook

Prior Day Market Sentiment: Bearish
Overnight Inventory Change:Neutral
Inside Day/Outside Day: Inside
Location of price relative to market profile: Near value area low
Notable overnight futures markets changes:
Up:CL (Crude Oil), KC (Coffee)
Down:NKD (Nikkei), 6N (New Zealand Dollar), ZO (Oats)


News for the day:

Productivity & Costs- 8:30a
Petroleum Status Report- 10:30a

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


Projected ES price action for the day: There is a tug of war currently taking place on the S&P with back and forth trading activity occurring with overlapping value areas dating back to the beginning of May.  As part of market profile theory, an emphasis is placed on where prices closed relative to the point of control (POC), the price where the most amount of volume had traded at from the previous day.  The market open will be key. Given yesterday's close near the lows and neutral overnight activity, the higher probability is for a migration higher to the POC as traders who were short in the hole would cover their positions.  However, if there is a liquidation break, any selling below Monday's low of 1860.5 would trigger additional bearish algorithmic trading programs to enter the market and setup for a trending day lower. 




Stock of the Day: First Solar, Inc. (FSLR)- Earnings reported yesterday







ES Daily Trend: Neutral/Bullish






ES Weekly Trend:  Bullish




ES Monthly Trend:  Bullish 




























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