Inflation readings

Outlook: Markets are rising, boosted by upbeat Chinese data, while U.S. oil futures jumped to a near six-month high as an escalation in fighting between the Iraqi government and Kurdish forces threatened supply.

"My best guess is that these soft [inflation] readings will not persist, and with the ongoing strengthening of labor markets, I expect inflation to move higher next year," Janet Yellen told a Group of 30 conference on Sunday. While the FOMC left rates unchanged at its September meeting, it made clear its expectation of another boost before end of the year.

/ES Value: YVAH 2554.75 YPOC 2551.75 YVAL 2550.75

/ES Plan: After a new record high, market finally closed balanced on Friday leaving a bimodal profile. Current auction range finds balance at 2558, excess 2560-2562. Overnight is bearish, moving within Friday's value so we've 2 options:

A) If market remains above YVAL 2550.75 with volume rising, try to be a buyer leaning on 2550.75 2552 and 2554 towards PBTs 2558 and 2560. Failure to take out ONH early is signal of weakness.

B) If market goes through YVAL 2550.75 with volume falling, try to be a seller leaning on 2550.75 and 2550 towards PBT 2545 and edge 2539. Failure to breakdown ONL early is signal of a strength.

Link for Updates (Check it during RTH session)

Today's Economic Calendar

08:30 AM Empire State Mfg Survey
02:00 PM ECB's Lautenschläger speech
02:00 PM Treasury Budget

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

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