Tariffs War

Outlook 03/23: As expected, the world is retaliating against President Donald Trump's protectionist trade policies with more protectionist trade policy. On Thursday, the Trump administration announced that it would impose tariffs on $50 billion worth of goods imported from China. This was followed by a sharp sell-off in the financial markets. After the U.S. markets closed, China announced reciprocal tariffs on $3 billion worth of U.S. imports. Traders will continue to monitor developments as global trade relations deteriorate.

/ESM8 Value: YVAH 2693 YPOC 2678 YVAL 2663

/ES Plan: Yesterday market closed balanced and overnight shows a multimodal profile moving below Yesterday's value, so options are:

A) If market remains above YLOD 2642 with bullish internals, try to be a buyer leaning on 2642-44 towards ONH 2651 and YVAL 2663. 'Look below and fail' is a signal of strength.

B) If market starts to move below YLOD 2642 with bearish internals, become a seller leaning on 2642-44 towards LVN 2632 ONL 2617 and Edge 2606. 'Look above and fail' is a signal of weakness.

Tips: Consider the habits of the product you trade, such as '10 Handle Rule' 'Value Area Rule' and 'One Tick Failure'. More on Glossary.

Today's Economic Calendar

10:00 New Home Sales
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.

Questions? Just ask via email or twitter @verniman direct message.