China Crisis

Outlook 09/20: U.S. stock futures began the week deeply in the red as investors fear a contagion sweeping financial markets from the troubled China property market. Hang Seng index plunged 4% with embattled developer China Evergrande Group on the brink of default. The Federal Reserve begins a two-day meeting Tuesday and investors are worried the central bank will signal it’s ready to start pulling away monetary stimulus amid surging inflation and improvement in the job market. Covid cases because of the delta variant remain at January levels as colder weather approaches in North America. Investors are also concerned about brinkmanship in DC as the deadline to raise the debt ceiling approaches. Congress returned to Washington from recess rushing to pass funding bills to avoid a government shutdown.

/ESZ21: YVAH 4438 YPOC 4424 YVAL 4417 GAP 4415

/ES Plan: Last session market closed bearish, and overnight continues on that way, moving below Friday's range, so these're the opening and initial balance options for today:

A) If market moves above HVE 4363 with bullish internals, buy towards HVEs 4385-4406 and GAP 4415.

B) If market remains below 4363 with bearish internals, sell towards ONL 4440 GAP 4319 and HVE 4313.

Note: Overnight inventory is 100% bearish. The expected action is a counter-auction relative to overnight inventory; failure to see the counter-auction would be an indication of potential trend day.

Market Movers

10:00 NAHB Housing Market Index

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