Soft Tensions

Outlook 03/26: U.S. index futures are pointing to sharp gains on reports that the Trump administration sent a letter to Chinese economic overseer Liu He setting out specific requests to help slash China's trade surplus with U.S. Treasury Secretary Steven Mnuchin is weighing a trip to Beijing, with China willing to hold talks over their trade differences.

/ESM8 Value: YVAH 2660 YPOC 2649 YVAL 2620

/ES Plan: On Friday market closed balanced and overnight shows a bullish profile moving within Friday's value, so options are:

A) If market remains above YVAL 2620 with bullish internals, try to be a buyer leaning on 2620-22 towards YPOC 2649 and YVAH 2660. 'Look below and fail' is a signal of strength.

B) If market starts to move below YVAL 2620 with bearish internals, become a seller leaning on 2620-22 towards GAP 2595 ONL 2591 and HVE 2586. 'Look above and fail' is a signal of weakness.

Tips: High Volume Edge (HVE) refers to the last upper/lower level of a higher volume range with great chance to work as support/resistance area. More on Glossary.

Today's Economic Calendar

10:30 Dallas Fed Manufacturing Survey
12:30 PM Fed's Dudley Speech
01:00 PM 2-Year Note Auction

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

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