Premarket GPS

Context: Spanish security forces are searching for the driver of a van-ramming attack at Las Ramblas, a busy pedestrian mall in Barcelona, Spain, that killed at least 13 people and injured over 100. According to witnesses, the attacker has escaped on foot following the attack, responsibility for which has been claimed by ISIS. Markets are bouncing after yesterday global selloff.

/ES Value: YVAH 2453 YPOC 2430 YVAL 2428

/ES Plan: Yesterday closed bearish (GAP 2430). Overnight range (2424.25-2434) is balanced. We're moving within yesterday's value. Yesterday's profile has many steps which have a big chance of being revisited. However, selling pressure remains so we've 2 options:

A) If market moves above CHVN-YVAL 2428-27 and remains above that level on subsequent tests, it is a clearly bullish signal, so try to be a buyer leaning on LVNs (2429-2427) towards ONH 2434 CLVN 2441 and finally CLVN-YVAH 2453. Internals should be neutral or positive. Failure to take out ONH 2434 early is signal of weakness and potential for a move down to the 2400s area (CLVN 2405)

B) If the market begins to trade below CHVN-YVAL 2428 and volume increases at lows, then try to be a seller towards ONL 2424, lower edge 2419 and CLVN 2405. Internals should be neutral or negative. Failure to take out ONL early is a signal of rejection.

Tips: Remember that there is often a long trade when the ONL is taken out, prices then cannot hold below it (One Tick Failure) and a signal occurs when prices cross back above the ONL.

Today's Economic Calendar

10:00 AM Consumer Sentiment
10:15 PM FOMC Member Kaplan
01:00 PM Baker-Hughes Rig Count

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