Outlook 07/10



Context: "We will continue to fight protectionism including all unfair trade practices," G20 leaders declared in a joint communique on Saturday following a meeting in Hamburg, Germany. However, G20 stepped back from an unequivocal commitment to free trade for the 1st time since its inaugural summit in 2008. Instead, it said it would "strive to ensure a level playing field," nothing "the importance of reciprocal and mutually advantageous trade and investment frameworks."

Tesla is in focus after the very first Model 3 rolled off the company's assembly line and into the hands of CEO Elon Musk. Tesla is up 1.78% to $318.80 in premarket trading after falling off 18% last week.

Plan: Globex shows balanced profile. We are moving within Friday's value after test gap zone 2427, so first idea is wait and see reaction at YVAH-GLVN 2425. If market push above 2425 area, then I try to be a buyer towards ONH 2429.25 and upper edge YBT-CLVN 2439. If buying idea fails and breaks ONL sharply, I become a seller leaning on that ONL towards YVAL 2416. If 2416 fails, stay short towards GAP+NFPSoC 2408.

Tips: Today after big news-driven event like NFP, the 'Return SoC setup' could be into play. Scene of the Crime: zone from which a news-based move was initiated and is susceptible to a retest. Just like a criminal return to the scene of the crime, the market often does the same.

Value Levels /ES: VAH 2425 POC 2423 VAL 2416

Today's Economic Calendar

10:00 Labor market condition index
12:30 PM TD Ameritrade IMX
3:00 PM Consumer Credit

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

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