The Cloud Trader: Morning Update for Tuesday, 10/15/13

Tuesday, October 15, 2013

Morning Update for Tuesday, 10/15/13

Major Support/Resistance Levels- ES

*Highlighted regions denote strong areas of support (green)/resistance (red) & mid-range level (brown)

Daily Outlook

Prior Day Market Sentiment: Bullish
Overnight Inventory Change: Neutral/long
Inside Day/Outside Day: Inside
Location of price relative to market profile: Above value area/near previous day high
Notable overnight futures markets changes:
Up: NG, DX
Down: SI, GC, CL, 6E

News for the day:

Empire State Mfg Survey: 8:30a

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

Projected ES price action for the day: The buyers continue to have the momentum with news that Congress is nearing a deal. Prices on Monday closed near highs and the premarket activity is currently near the highs, which are both bullish signs. Additionally, the ES cleared the 1670-1700 range on the daily chart. Therefore, 1700 will be the line in the sand for the bulls to protect. If prices continue upward at the open, the next level of resistance is the pivot cluster near 1712. If prices sell off below 1700, then more two-sided trading should be expected, especially in the value area.

Stock of the Day: SPDR Gold Shares (GLD)- Bearish cloud break. Gold futures down in the premarket.