Outlook 08/16: China said on Thursday it will hold a fresh round of trade talks with the United States in Washington later this month, offering a glimmer of hope for progress in resolving a conflict that has set world markets on edge. Formal talks between the U.S. and China broke down last month and led to dueling tariffs. Futures stocks became bullish after this U.S.-China development.
/ESU8 Value: YVAH 2818 YPOC 2810 YVAL 2807
/ES Plan: Yesterday market closed leaving a bearish imbalance (PBT 2795). Overnight looks more bullish but bimodal (LIS 2832.50), moving above yesterday's value, so we've these options:
A) If market remains above LIS 2832.50 with bullish internals, become a buyer above 2833 towards ONH 2837.25 GAP 2841.25 HVE 2845 and GAP 2853.50 'Look above and fail' is a bearish signal.
B) If market starts to move below LIS 2832.50 with bearish internals, try to sell leaning on 2832 towards GAP 2822 ONL 2817.50 YLOD 2803 and PBT 2795. 'Look below and fail' is a bullish signal.
Tips: Summer time. Trade the first 2 hours for liquidity. Avoid to force trades after European close, when volume dries up and risk increases. Otherwise, just wait for US Bonds close (3PM ET) and then look for more liquidity near the NYSE closing bell (4PM ET).
Today's Economic Calendar
10:30 EIA Natural Gas Inventory
04:30 PM Money Supply
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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