U.S. stock index futures look poised for a fifth day of declines, as traders gear up for $230B of Treasury auction today. Treasury yields resumed their upward march overnight ahead of more U.S. debt sales, putting a bit of pressure on U.S. stock index futures. We are at some sort of critical moment, a crossroads, for bond and equity markets. American producer and consumer price data is also due in the next two days, and may determine where yields go from here.
/ESZ18 Value: YVAH 2893 YPOC 2887.50 YVAL 2884
/ES Plan: Yesterday market closed balanced but overnight looks bimodal (LIS 2881), moving below yesterday's value. We're moving into 2884-2864 auction range, so we've these options:
A) If market remains below LIS 2881 with bearish internals, try to be a seller towards YLOD 2874.50 and LVN 2864.
B) If market starts to move above 2881 with bullish internals, buy towards YVAL 2884 GAP 2887.75 and YVAH 2893.
Tips: Double digit gap below yesterday's close. Gap rules are in play: Larger gaps may not fill on the first day or may do so only partially.
Today's Economic Calendar
10:00 Atlanta Fed's Business Inflation Expectations
10:00 Wholesale Trade
11:30 3-Year Note Auction
12:15 PM Fed's Evans speech
01:00 PM 10-Year Note Auction
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.