NK new launch

Context: Futures are struggling for direction, signaling a muted open after falling earlier after North Korea fired another missile over Japan. Traders are also getting ready for raft of U.S. economic data, including figures for retail sales, industrial production and consumer sentiment.

/ESZ7 Value: YVAH 2495 YPOC 2493.50 YVAL 2492

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

A) If the market moves above Edge-LIS 2490-89 with internals neutral or positive, try to be a buyer leaning on 2490 towards ONH 2494 YVAH 2495 and PBTs 2497 and 2503. Failure to take out ONH early is signal of weakness and opens the gate for more selling pressure.

B) If market moves below Edge-LIS 2490-89 with internals neutral or negative, try to be a seller leaning on 2490 towards ONL 2487 GAP 2485.25 CLVN 2483 and Edge 2480. Failure to breakdown LIS 2490 early is signal of a potential move back to YVAH 2495.

Tips: Use market internals (ADSPD and VOLSPD), both can give you a quick overall synopsis of the market. When you see changes happening in price that are not evident on one or both market internals, this could be a signal of divergence. If you are evaluating a long position, you want these internals to be positive and/or at least their slope rising. If your bias is bearish, you want the internals to be negative and/or their slope falling. These internals can help you to confirm your decision.

Today's Economic Calendar

08:30 AM Retail Sales (Aug)
09:15 AM Industrial Production (Aug)
09:15 AM Capacity Utilization (Aug)
13:00 AM Baker Hughes US Oil Rig Count

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