Outlook 10/11: A mix of higher bond yields and growth worries are continuing to take their toll on the markets, with equities across Asia and Europe getting slammed overnight after a bloodbath in the U.S. Led by tech carnage, the S&P 500 and the Dow posted their biggest daily declines since Feb. 8, while the Cboe Volatility index (VIX) surged 43.9% to 22.96. Adding to the worries were several statements from President Trump that referenced a long-awaited "correction" and said that the "Fed is going loco" by raising rates.
/ESZ18 Value: YVAH 2851 YPOC 2844 YVAL 2780
/ES Plan: Yesterday market closed bearish but overnight looks bimodal (LIS 2774), moving below yesterday's value. We're moving into 2787-2765 auction range, so we've these options:
A) If market remains above LIS 2774 with bullish internals, buy towards ONH-HVE 2878 HVE 2796-2808 and YPOC 2844.
B) If market starts to move below 2774 with bearish internals, sell towards LVN 2765-2758 ONH 2747.50 and LVN 2744.
Tips: VIX climbed to 23.00 so don't take high risk trades if you see prices jumping 1-2 points in miliseconds.
Today's Economic Calendar
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
01:00 PM 30-Year Note Auction
02:00 PM Treasury Budget
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
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