China Congress

Outlook: Chinese President Xi Jinping opened the Communist Party Congress today with a pledge to build a "modern socialist country" that will remain open to the world. The nation will also push ahead with market-oriented reforms of its foreign exchange rate as well as its financial system, and let the market play a decisive role in the allocation of resources. The meeting will run for a week until Oct.24.

/ES Value: YVAH 2556.75 YPOC 2555.50 YVAL 2553.25

/ES Plan: Yesterday, market tested record high, leaving a balance D shape. Globex printed a new record high and we know that ATH printed in the overnight session has always been revisited during regular hours. Overnight inventory is bullish, moving above value, so we've 2 options:

A) If market remains above LVN 2556.25 with volume rising, try to be a buyer leaning on YVAH 2556.75 and 2558.75 towards ONH 2562.25 and PBT 2567. Failure to take out ONH early is signal of weakness.

B) If market goes through LVN 2556.25 with volume falling, try to be a seller leaning on YVAH 2556.75 and 2555.50 towards YVAL 2553.25 and LVN 2550. Failure to breakdown ONL early is signal of a strength.

Link for Updates (Check it during RTH session)

Today's Economic Calendar

08:30 AM Housing Starts
10:00 AM Atlanta Fed's data
10:15 AM ECB's Coure speech
10:30 AM EIA Oil Inventories
02:00 PM Fed's Beige Book
02:00 PM Treasury Budget

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

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