Auto Sales Data

Outlook: In a busy week for the U.S. economy, Tuesday has a lighter schedule with only the September report on auto sales set to be the day’s economic highlight. Expectations are that auto sales will come in at an annualized rate of 17.15 million, which would be an improvement over August’s reported rate of 16.03 million cars. August’s number, however, was impacted by a slowing in sales due to Hurricane Harvey’s.

/ES Value: YVAH 2527 YPOC 2524 YVAL 2521

Plan: Yesterday, market printed record high, leaving a bullish imbalance (PBT 2531). Globex printed a new record high (2529.50) and we know that ATH printed in the overnight session has always been revisited during regular hours. Overnight inventory is bullish, moving above Yesterday's value, but on the bigger picture, composite profile shows an excess high, so we've 2 options:

A) If market remains above YVAH 2527 with cash volume rising, try to be a buyer leaning on edge 2527.25 towards ONH 2529.50 and PBT 2531. Failure to take out ONH 2529.50 early is signal of weakness.

B) If market moves below YVAH 2527 with cash volume falling, try to be a seller leaning on LVN 2525.50 towards YPOC 2524 and LVN 2520. Failure to breakdown ONL 2525.50 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 adding volume on this new auction range. Otherwise, if after a new record high on RTH, sellers could start a liquidation break into previous range.

Today's Economic Calendar

Auto Sales
8:30 AM Gallup US ECI
8:55 AM Redbook Chain Store Sales

Link for Updates

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

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