Outlook 03/29: U.S. stock futures point to a lower open, as the collapse of hedge fund Archegos is weighing on stocks premarket. Archegos, a Tiger cub hedge fund, was forced to sell more than $20B in positions after a margin call. The sale led to volatile share moves on Friday, with ViacomCBS and Discovery tumbling, along with Chinese Internet shares. Banks are now warning about profit hits due to the sale, with Credit Suisse and Nomura updating shareholders about their exposure.
/ESM21: YVAH 3929 YPOC 3915 YVAL 3907 GAP 3964.25
/ES Plan: Last session market closed bullish, but overnight looks more balanced, still moving above Friday's value, so these are the initial balance options for today:
A) If market moves above LIS HVE 3935 with bullish internals, buy towards ONH-GAP 3964 and ATH 3978.50
B) If market moves below LIS 3935 with bearish internals, sell towards YVAH-ONL 3928.75 and YVAL-GAP 3905.
Note: Market opens above previous value area and if it remains above value, it is a clearly bullish signal. But, if market begins to trade within value with volume increasing, 'Value Area Rule (VAR)' comes into play.
Market Movers
10:30 Dallas Fed Manufacturing Survey
11:00 Fed's Waller Speech
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