Outlook 09/24: Global markets are mostly lower as the newest tariffs between the U.S. and China took effect overnight, marking a sharp escalation in the dispute between the world’s two largest economies. The duties include U.S. tariffs on $200 billion worth of Chinese goods, along with retaliation to the order of tariffs by Beijing on $60 billion worth of U.S. goods. Talks have broken down, with no date set for a follow-up.
In the week ahead, the big event for investors will be the Federal Reserve's latest policy meeting, with a monetary policy statement slated for release on Wednesday. This will be followed by a press conference with Fed Chair Jerome Powell. Investors widely expect the Fed to raise its benchmark interest rate target range by 25 basis points to a new band of 2%-2.25%.
/ESZ8 Value: YVAH 2945 YPOC 2940 YVAL 2936
/ES Plan: On Friday market closed balanced. Globex opened more bearish (below Friday's range) but ON looks more balanced, so we've these options:
A) If market remains above HVE 2927 with bullish internals, become a buyer towards GAP 2934 YVAL 2936 and YVAH 2945.
B) If market starts to move below 2927 with bearish internals, try to sell towards ONL 2923.25 HVE 2919 and GAP 2915.
Note: Traders be careful as the SP500 was rebalanced for the 1st time in 20 years on Friday adding/removing some stocks. Hedge funds will need to match or beat its performance so we could see erratic trading today.
Today's Economic Calendar
10:30 Dallas Fed Manufacturing Survey
01:00 PM 2-Year Note Auction
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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