Outlook 10/23: Global markets tumbled Tuesday with European stocks touching a two-year low. U.S. equity futures are deep in the red. SP500 futures slumped 1.5% to a new low near 2700 after 3M, Caterpillar earnings disappoint. Broader forces are at play as well, amid Saudi Arabia's diplomatic isolation, worries about Italy's finances and a stalemate over Brexit.
/ESZ18 Value: YVAH 2767 YPOC 2761 YVAL 2756
/ES Plan: Yesterday market closed bearish (PBT 2735). Overnight hit PBT 2735 leaving a bearish imbalance (GBT 2688). We're moving into 2719-2704 high volume range, so we've these options:
A) If market remains below HVE 2719 with bearish internals, be a seller towards ONL 2710.25 HVEs 2704-2692 and HVE-GBT 2688.
B) If market starts to move above 2719 with bullish internals, buy towards HVEs 2729-2742 YLOD 2751 GAP 2756 and ONH 2757.50
Tips: Double digit gap below yesterday's close. Gap rules are in play: Larger gaps may not fill on the first day or may do so only partially. VIX climbed to 24.00 so don't take trades above your risk limits.
Today's Economic Calendar
09:30 Fed's Kashkari Speech
10:00 Richmond Fed Mfg.
01:00 PM 2-Year Note Auction
01:30 PM Fed's Bostic Speech
02:15 PM Fed's Kaplan Speech
06:15 PM Fed's Evans Speech
08:00 PM Fed's George Speech
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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