Outlook 08/05: Stock futures fall sharply on Monday as part of a global market sell-off centered around U.S. recession fears. Japan’s Nikkei 225 plunged 12% in its worst day since the 1987 Black Monday crash. Fears of a U.S. recession were the main culprit for the global market meltdown after Friday’s disappointing July jobs report. Investors are also concerned that the Federal Reserve is behind in cutting interest rates to bolster an economic slowdown, with the central bank choosing instead to keep rates at the highest in two decades last week.
ESU24 (SEP2024): YVAH 5378 YPOC 5360 YVAL 5333 GAP 5372
/ES Plan: Last session market closed bearish (PBT 5246), and overnight continues on that way, moving below previous value/range, so these're the opening and initial balance options for today:
A) If market moves above HVE 5205 with bullish internals, buy towards HVEs 5246-5323 YVAL-YLOD 5333 GAP 5372 and YVAH 5378.
B) If market moves below HVE 5205 with bearish internals, sell towards HVEs 5180-5155-5125 ONL 5120 GAP 5092 HVE 5060 and GAP 5004.
Note: Overnight inventory is 100% bearish. The expected action is a counter-auction; failure to see the counter-auction would be an indication of potential bearish trend day. Market opens below value and if it begins to trade within value,
VAR comes into play. On these high volatility days (VIX>50), your first trading rule is 'manage your risk'. Regardless of how much more money you could have made, you do realize that you just can not manage risk on this enviroment.
Market Movers
9:45 PMI Composite Final
10:00 ISM Service Index
5:00 PM Fed's Daly
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