DACA and Taxes

Context: Rich Americans "will not be gaining at all" from the tax reform plan that Republicans hope to pass this year, according to President Trump, and taxes on the group may even "have to go higher." Meanwhile, leading congressional Democrats said they have reached a DACA deal with the president, which excludes border wall funding, but the claim has been rejected by the White House.

/ESZ7 Value: YVAH 2494 YPOC 2493 YVAL 2492

/ESZ7 Plan: Yesterday closed leaving a bullish 'p' shape (PBT 2497) within an slow rising pace. Overnight inventory is bearish moving below yesterday's value drawing a bimodal 'B' profile, so we've 2 options:

A) If market moves below YVAL-LVN-LIS 2492-91.50 with internals neutral or negative, try to be a seller leaning on that level towards GAP 2485.25 CLVN 2483 and Edge 2480. Failure to breakdown ONL early is signal of a potential move back to yesterdays value.

B) If the market moves above YVAL-LVN-LIS 2492-91.50 with internals neutral or positive, try to be a buyer leaning on that level towards ONH 2494.75 and PBTs 2497 and 2503. Failure to take out YVAL early is signal of weakness and opens the gate for more selling pressure.


Tips: Overnight inventory has been measured using yesterday RTH closing as main reference. If volume remains above that level, inventory is bullish and vice-versa, if volume remains below that settlement, inventory is bearish.

Today's Economic Calendar

09:45 AM Bloomberg Consumer Comfort Index
10:30 AM EIA Natural Gas Inventory

Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.