FED Agenda

Outlook: Speculation is ramping up over the potential impact of former Fed governor Kevin Warsh being appointed as the next chairman of the central bank. Warsh favors reduced regulation on banks and could de-emphasize the Fed's reliance on utilizing an inflation target as a guide for interest rate hikes. While his rhetoric leans to the hawkish side, some analysts point out that his voting record is mixed. On the Fed calendar today, San Francisco Fed president John Williams is scheduled to speak at a community banking conference, while Philadelphia Fed president John Harker and Kansas City Fed president Esther George are both on tap to talk at a workforce conference.

/ES Value: YVAH 2537 YPOC 2535 YVAL 2532

Plan: Yesterday, market printed record high, leaving a bimodal imbalance (LIS 2532). Overnight inventory is balanced, moving within Yesterday's value, but on the bigger picture, composite profile shows an excess high, so we've 2 options:

A) If market remains above YVAL-LIS 2532 with volume rising, try to be a buyer leaning on edge 2533.50-2534 towards ATH 2538 PBT 2541.

B) If market moves below YVAL-LIS 2532 with volume falling, try to be a seller leaning on LVN 2532.50-2532 towards edge 2525 LVN 2520.

Tips: On the bigger picture, composite profile shows an excess high so buyers need to hold above the upper edge adding volume on this new auction range. Otherwise, if after a new record high on RTH, sellers could start a liquidation break into previous range.

Link for Updates

Today's Economic Calendar

08:30 AM Initial Jobless Claims
08:30 AM International Trade
09:10 AM Fed's Powell speech
09:15 AM Fed's William speech
09:30 AM Fed's Harker speech
09:45 AM Bloomberg Consumer Index
10:00 AM Factory Orders
10:30 AM EIA Natural Gas Inventory
04:30 PM Fed Balance Sheet
09:00 PM Fed's George speech

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

Questions? Just ask via twitter direct message.