Outlook 10/12

Context: The Federal Reserve is in the spotlight with the central bank due to release minutes from its meeting in September this afternoon. The text will be closely analyzed to see how close the three dissenting Fed members from the last FOMC meeting were from reeling in more support for a 25 basis point increase. Though the market is pricing in a 60% likelihood of a rate hike at the December 14th meeting, economists note that there is plenty of data to be released yet, which could push a rate hike into 2017. It's a foregone conclusion that the Fed will skip any rate action at the November meeting with the wildcard presidential election only a week later.

Plan: Globex is bearish, moving in value within 2135-2105. It seems an open auction, so first idea is to be a seller below 2135 towards VAL 2123 and GAP 2113. If that fails, I become a buyer towards CLVN 2150 and GAP 2159.25

Value References (/ESZ6): VAH 2138 POC 2134.50 VAL 2123

Economic Data (ET): 10:00 JOLTS; 2:00 PM FOMC minutes.

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