Outlook 07/19: Markets show weakness due tariffs war continues. The EU will consider introducing tariffs on coal, pharmaceuticals and chemical products from the U.S. if President Trump imposes restrictions on European cars. A threat by the U.S. government to impose tariffs of up to 25% on imported auto parts could hit consumers in unexpected ways: higher repair costs, insurance premiums and even the theft of more cars for their parts, the industry said. President Donald Trump's administration has launched an investigation into whether auto imports pose a national security threat and threatened to slap the tariffs on cars from the European Union and elsewhere.
/ESU8 Value: YVAH 2818 YPOC 2816 YVAL 2810
/ES Plan: Yesterday closed bullish (PBT 2825) and Overnight looks bearish, moving below Yesterday's value, so we've these options:
A) If market remains below YVAL 2810 with bearish internals, try to sell leaning on 2810 towards ONL 2806.25 LVN 2802 GBT 2798 HVE 2795 and HVE 2789. 'Look above and fail' is a bearish signal.
B) If market starts to move above LIS 2810 with bullish internals, become a buyer above 2810 towards GAP 2815.75 ONH 2818 and PBT 2825 and PBT 2833. 'Look below and fail' is a bullish signal.
Tips: I share this trading process everyday, using Volume Profile and Market Internals. First, define the Bull/Bear Line in the Sand (LIS).
Second, watch volume profile skew, and wait for a bullish 'p' or bearish 'b' imbalance. Third, watch ES VWAP slope, rising (bullish) or falling (bearish). Fourth, wait for a lean near LIS-VWAP-VAH-VAL. Best entry is as close as possible to these key levels. Finally, wait for ES price action and SPX internals correlation to confirm decisions about entries/exits.
Today's Economic Calendar
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
Questions? Just ask via email or twitter @verniman direct message.
