Futures point higher

Context: President Trump has revealed a reversal of strategy in Afghanistan, warning against creating a vacuum for terrorists, but declined to give details on troop levels. Defense stocks have nearly doubled the S&P 500's performance since Trump's election.

/ES Value: YVAH 2428 YPOC 2427 YVAL 2422

/ES Plan: Friday closed bullish (PBT 2437). We're moving above yesterday's value after rejection of lower edge, so that opens the gate to visit the upper side. However, overnight is balanced so we've 3 options:

A) If the market opens above LVN 2434, try to be a buyer towards ONH 2437 and CLVN 2440. Internals should be neutral or positive. If market push above CLVN 2440, next target will be CLVN 2453.

B) If market opens below LVN 2434, try to be a seller towards CHVN-YVAH 2428. Internals should be neutral or negative. If market push below CHVN-YVAH 2428, next target will be YVAL 2422.

Tips: Statistical studies say that if a market rejects one side of value, there is an 70% chance that the market will rotate all the way to the other side of value. yesterday, lower edge has been rejected so the upper edge is on the radar for today.

Today's Economic Calendar

08:55 AM Redbook Chain Store Sales
09:00 AM FHFA House Price Index
10:00 AM Richmond Fed Mfg.

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