Outlook 08/11

Context: Markets are falling for a fourth day after President Trump doubled down on his North Korean rhetoric, stating his "fire and fury" statement "wasn't tough enough." He also warned that if Kim Jong-un's regime "does anything" to the U.S. or an ally, "things will happen to them like they never thought possible." Another threat to Pyongyang? China state media said the country should remain neutral if North Korea fires first on U.S. territory.

/ES Value: YVAH 2461 YPOC 2449.25 YVAL 2443

/ES Plan: Yesterday left a value transition from CHVN 2470 towards CHVN 2430, within new auction range 2453-2405. Overnight is balanced, moving below Yesterday's value, so as usual, we've 2 options:

A) If market moves below YVAL 2443 and remains below that level on subsequent tests, it is a clearly bearish signal. Failure to take out ONH early is signal of weakness, so try to be a seller towards CHVN 2430.

B) If the market begins to trade above YVAL 2443 and volume increases at highs, then try to be a buyer towards YPOC 2449 and CLVN 2453, upper edge of the current auction range 2453-2405.

Tips: "Value Transition" is the migration or movement of value to a new level. When the price moves away from its market value enters on imbalance phase with two obvious results: "Rejection" and return to its original value to correct this inefficiency or, "Acceptance", the new price is accepted, and in this new case, value shifts to a new level.

Today's Economic Calendar

08:30 AM Consumer Price Index
01:00 PM Baker-Hughes Rig Count

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

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