Tax Debate

Context: Seeking a major legislative victory before the year's end, President Trump dives back into the tax debate today with a speech in Missouri. Reports suggest he will elaborate on plans to curb deductions for high-income taxpayers, but will unlikely go into other specifics. Congress already has its hands full when it returns from the August recess, with topics ranging from the federal debt limit to hurricane relief efforts.

/ES Value: YVAH 2448 YPOC 2446 YVAL 2436

/ES Plan: Yesterday closed bullish, after testing lower edge and failed. Overnight inventory is slight bearish moving within yesterday extended value. Today's DAT (Day After Trend) Yesterday we saw one way only, so we've a high probability that we will fall a little bit today. As usual, we've 2 options:

A) If the market moves above ON-VAH 2451 and remains above on subsequent tests, try to be a buyer leaning on steps 2449.75 2451 2452 towards ONH 2454.25 CLVNs 2456-2461. Internals should be neutral or positive. Failure to take out ONH early is signal of weakness and potential for a move lower.

B) If market moves below ON-VAH 2451 and remains below on subsequent tests, try to be a seller leaning on steps 2449.75 2446.50 2444.75 towards CLVN 2441 LVNs 2438 2432 CHVN 2428. Internals should be neutral or negative. Failure to take out ONL early is signal of rejection and potential for a move higher.

Tips: High Volume areas represent value and are attractors. They serve as support and resistance the first time touched only. If not immediately rejected, you can expect to trade around the high volume numbers for one or two hours. It’s where new moves start. New moves come out of the middle. The way the market confirms this is through the retest. If it holds, more people will come in and trade looking for a breakout.

Today's Economic Calendar

08:15 AM ADP Jobs Report
08:30 AM GDP Q2
08:30 AM Corporate profits
09:15 AM FED Powell speech
10:30 AM EIA Crude Inventories
03:00 PM Farm Prices

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