Outlook: The trade deals in China keep coming as the White House expects to proclaim upwards of $250B in investments during President Trump's visit to Beijing. The reality, however, is that the roughly 15 agreements set to be unveiled on Thursday are mostly non-binding memorandums of understanding and could take years to materialize.
/ES Value: YVAH 2592 YPOC 2590 YVAL 2585
/ES Plan: Yesterday market closed leaving bullish imbalance (PBT 2600). Globex printed a new record high and we know that ATH printed in the overnight session has always been revisited during U.S.RTH. Overnight inventory is bearish, moving below yesterday's value, so we've 2 options:
A) If market remains below YVAL 2585 with internals (VOL+AD) falling, try to be a seller leaning on 2584-2580 towards ONL 2575.50 and LVN 2571. Failure to breakdown ONL early is signal of a strength.
B) If market starts to move above YVAL 2585 with internals (VOL+AD) rising, try to be a buyer leaning on 2584-2585 towards YPOC 2590 and ONH 2594.50 Failure to take out ONH early is signal of weakness.
Tips: A rule of thumb when using the VWAP; if the VWAP line is flat lining, but the price has gone up or down impulsively, the price will likely return to the VWAP line. However, if the VWAP line is starting to gradually go up or down along with the trend, it is probably not a good idea or good time to take a counter trend position.
Today's Economic Calendar
09:45 AM Bloomberg Consumer Comfort Index
10:00 AM Wholesale Trade
10:30 AM EIA Natural Gas Inventory
01:00 PM 30-Year Note Auction
Link for Updates (Check it during RTH session)
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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