Outlook 06/08: Risk aversion has returned to the markets, with equities across the globe sinking overnight ahead of a contentious G7 summit in Canada. In response to the combative comments issued by both countries, President Trump took to Twitter late Thursday to blame France and Canada of imposing massive tariffs on U.S. goods and accuse Justin Trudeau of "being so indignant." At worst, the main outcome could generate an escalation of a trade conflict that has already seen a rapid proliferation of retaliatory tariffs.
/ESM8 Value: YVAH 2775 YPOC 2769 YVAL 2766
/ES Plan: Yesterday market closed balanced. Overnight is bimodal (LIS 2766), moving within yesterday's value, so we've these options:
A) If market remains above LIS 2766 with bullish internals, be a buyer leaning on 2766 towards ONH 2778.50 HVE 2781 and PBT 2786. 'Look below and fail' is a bullish signal.
B) If market starts to move below LIS 2766 with bearish internals, become a seller leaning on 2766 towards ONL 2755.75 and LVN 2746. 'Look above and fail' is a bearish signal.
Tips: Rollover starts. /ESU8 (September 2018) is now the front month in US index futures. This is the contract I'm trading/quoting.
Today's Economic Calendar
10:00 Wholesale Trade
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.
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