Morning Update for Monday, February 2nd

Major Support/Resistance Levels- ES

Daily Outlook

Prior Day Market Sentiment: Bearish
Overnight Inventory Change: Net long
Inside Day/Outside Day: Inside
Location of price relative to market profile: Near value area low
Notable overnight futures markets changes:
Up: Crude Oil (CL), Soybeans (ZS)
Down:Natural Gas (NG), Gold (GC), Bonds (ZB)


News for the day:

8:30a: Personal Income and Outlays
9:45a: PMI Manufacturing Index
10:00a: ISM Manufacturing Index
10:00a: Construction Spending

*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 choppy price action continues on the ES.  The market is trading in a well defined range featuring a double top and double bottom dating back to the beginning of 2015.  Volatility has increased recently and is setting the table for a breakout.  On an intraday basis, the tone is neutral to bullish as the buyers have been more active in the premarket.  Keep the stops tight until the market provides a stronger indication of the bulls or bears taking the lead.  

ES Daily Trend: Neutral