4th Quarter Starts

Outlook: U.S. stock index futures pointed to a cautious, mixed open as U.S. Treasury yields hit their highest in almost 12 weeks, while the euro got knocked overnight, falling 0.7% to $1.1738, as more than 90% of Catalan voters chose independence from Spain amid clashes with riot police. Firming expectations the U.S. Federal Reserve will raise interest rates for a third time this year, data pointing to steady growth in the world's largest economy and talk of a potentially more hawkish successor to Janet Yellen combined to push Treasury yields higher.

/ES Value: YVAH 2517 YPOC 2514.25 YVAL 2512

Plan: On Friday, market printed record high, leaving a bullish imbalance (PBT 2525). Sundays opening printed a new record high (2523.50) and we know that ATH printed in the overnight session has always been revisited during regular hours. Overnight inventory is bullish, moving above Friday's value, but on the bigger picture, composite profile shows an excess high, so we've 2 options:

A) If market remains above YVAH 2517 with cash volume rising, try to be a buyer leaning on 2520-2519.75 towards ONH 2523.50 and PBTs 2525-26.50 Failure to take out ONH 2523.50 early is signal of weakness.

B) If market moves below YVAH 2517 with cash volume falling, try to be a seller leaning on 2517-2517.50 towards YPOC 2514 and LVNs 2510-09.25 Failure to breakdown ONL 2517 early is signal of a strength.

Tips: On the bigger picture, composite profile shows an excess high so buyers need to hold above the upper edge (2510-09) adding fuel on this new auction range. Otherwise, if after a new record high on RTH, sellers could sink into previous range (2509-2485).

Today's Economic Calendar

09:45 AM PMI Manufacturing Index
10:00 AM ISM Manufacturing Index
10:00 AM Construction Spending
02:00 PM FOMC's member Kaplan

Link for Updates

Link for Treasuries

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

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