Tax Reform

Outlook: U.S. stock index futures are ticking higher, as traders await details of U.S. tax reform from the Trump administration. It's said to have four "very crucial principles," including making the tax code fairer and simpler, cutting taxes for the middle class, lowering the tax rate for businesses and luring offshore investments back into the country.

/ES Value: YVAH 2498 YPOC 2495 YVAL 2494

Plan: Yesterday /ES market left a bearish profile (PBT 2489) Watching the big picture, we're moving within 2485-2507 auction range, drawing a bimodal (CLVN 2497). Overnight is balanced moving above yesterday's value, so we've 2 options:

A) If market remains above CLVN 2497 with cash volume rising, try to be a buyer leaning on 2497-2498.25 towards ONH 2501.25 and Gap 2505. Failure to take out ONH 2501.25 early is signal of weakness and opens the gate for major sell off.

B) If market moves below CLVN 2497 with cash volume falling, try to be a seller leaning on 2497-2496.50 towards YVAL 2494 and PBT 2489. Failure to breakdown ONL 2494.25 early is signal of a potential breakout above yesterday's value.

Tips: Watching at the bigger picture, this range at record highs shows a lack of decent excess on it. Usually, market needs an excess high to call an end to the current bullish auction.

Today's Economic Calendar

08:30 AM Durable Goods Orders
09:15 AM FOMC Kashkari Speech
10:00 AM Pending Home Sales
10:30 AM Crude Oil Stocks change
01:30 PM Fed's Bullard Speech
02:00 PM FOMC Brainard Speech
03:20 PM President Trump Speech
07:00 PM Fed's Rosengren Speech

Updates Link (check during RTH session)

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

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