Nervous Market

Outlook 04/04: U.S. market futures are in the red amid escalating trade tensions between the U.S. and China. The Trump administration has imposed another $50B worth of 25% tariffs on China imports, to which China has responded with 25% tariffs on another 106 American products. The newest U.S. tariffs will impact some 1,300 Chinese products, including medical devices, batteries and machine tools, as well as some consumer products like television sets.

/ESM8 Value: YVAH 2602 YPOC 2591 YVAL 2582

/ES Plan: Yesterday market closed balanced but overnight shows a bearish profile (GBT 2541), moving below Yesterday's value, so today's options are:

A) If market remains below YVAL 2582 with bearish internals, become a seller leaning on 2582-81 towards ONL 2559.50 and HVE 2541. 'Look above and fail' is a signal of weakness.

B) If market starts to move above YVAL 2582 with bullish internals, be a buyer leaning on 2582-81 towards YVAH 2602 and GAP 2613.50 'Look below and fail' is a signal of strength.

Tips: Sit On Hands (SOH) is a warning used when the market is choppy or erratic and trades on either side have low odds of success.

Today's Economic Calendar

09:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:00 Factory Orders
10:30 EIA Petroleum Inventories

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.