Outlook 07/05

Context: Futures are indicating a lower open after being closed yesterday for July 4. The "risk-off" sentiment follows a strong rally last week that saw major indexes turn positive for 2016. Reasons for the drop are stemming from uncertainty in the U.K.: The prime minister vote, Brexit timing, bank capital requirements, a new corporate tax rate, trimmed growth forecasts and the future of the European Union.

Plan: Globex is bearish, moving below value within 2081-2105 range. It seems an open auction out of range so first idea is to be a seller, looking for RTH setups towards CLVN 2061. If that fails, I become a buyer towards POC-GAP 2095.75-2096.75.

Value References (/ESU6): VAH 2097.75 POC 2095.75 VAL 2093.25

Economic Data (ET): 10:00 Factory Orders; 12:30 PM TD Ameritrade IMX; 1:00 PM Gallup US Consumer Spending Measure.

Notice: Trading process and plan are based on the Auction Theory.

Warning: Trading Futures involves substantial risk of loss and is not suitable for all investors. The past performance is not necessarily indicative of future results. All the information on this website is for educational purposes and is not intended to provide financial advice.