Yellen Speech

Outlook: Markets are getting ready for another dose of Janet Yellen. She will speak at the Community Banking in the 21st Century Conference this afternoon amid growing speculation concerning her position as Fed Chair. Fed Governor Jerome Powell and ex-board Kevin Warsh were both interviewed at the White House last week to replace her in February.

/ES Value: YVAH 2531 YPOC 2527.25 YVAL 2526

Plan: Yesterday, market printed record high, leaving a bimodal imbalance (PBTs 2537/2521). Overnight inventory is balanced, moving within Yesterday's value, but on the bigger picture, composite profile shows an excess high, so we've 2 options:

A) If market remains above LIS 2529.50 with cash volume rising, try to be a buyer leaning on edge 2530 towards ONH 2533 and PBT 2537. Failure to take out ONH 2533 early is signal of weakness.

B) If market moves below LIS 2529.50 with cash volume falling, try to be a seller leaning on LVN 2529.50 towards VPOC 2524 and LVN 2520. Failure to breakdown ONL 2530 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

08:15 AM ADP Jobs Report
09:45 AM PMI Services Index
10:00 AM ISM Non-Manufacturing Index
10:30 AM EIA Petroleum Inventories
01:15 PM ECB's Draghi speech
03:00 PM Fed's Bullard speech
03:15 PM Janet Yellen speech

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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