Outlook 08/01

Context: Markets are opening August by edging higher, as the chances of a U.S. interest rate hike fades following Friday's disappointing GDP data. The Fed should be cautious in considering an interest rate increase due to lingering risks to the U.S. economy, New York Fed President William Dudley declared, describing Friday's GDP growth figure of 1.2% as "sluggish."

Plan: Globex is bearish, moving in value within 2151-2171 range. It seems an open auction, so first idea is to be a seller below VAH 2171 towards VAL 2166 and CHVN 2159. If that fails, I become a buyer towards ATH 2177.75 Remember ATH was made overnight so don’t expect it to hold as the high of this move.

Value References (/ESU6): VAH 2171 POC 2167 VAL 2166

Economic Data (ET): 9:45 PMI Manufacturing Index; 10:00 ISM Manufacturing Index and Construction Spending.

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.