US Tax Reform

Context: Renewed hopes of U.S. tax reform sparked a global rally on Tuesday, but futures faltered overnight after President Trump threatened a government shutdown. At a rally in Arizona, Trump said he was prepared for the move if Congress didn't present him a spending bill for next fiscal year that included funding for a border wall.

/ES Value: YVAH 2453 YPOC 2451 YVAL 2441

/ES Plan: Yesterday closed bullish, after testing upper edge (CLVN 2453) of the current auction range. Overnight inventory is bearish (GBT 2441) moving within yesterday's value, so we've 2 options:

A) If the market opens above CLVN-YVAL 2441 and remains above on subsequent tests, try to be a buyer towards LVN 2446.50 YPOC 2451 and CLVN-YVAH-GAP 2453. Internals should be neutral or positive. If market push above 2453, next target will be ONH 2454 and CLVN 2461.

B) If market opens below CLVN-YVAL 2441 and remains below on subsequent tests, it's a clearly bearish signal, try to be a seller towards LVN-2SD 2437.50. Internals should be neutral or negative. If market push below 2437.50, next target will be GAP-CHVN 2432-2428.

Tips: Today, CLVN 2453 will be key for call a "Value Transition". That means the migration or movement of value to a new level (2453-2480). When market shows an imbalance phase with two obvious results: "Rejection" and return to original value or "Acceptance" of new range.

Today's Economic Calendar

09:45 AM PMI Composite Flash
10:00 AM New Home Sales
10:30 AM EIA Oil Inventories

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