Outlook 05/31: President Trump has turned the tariff gun on his southern neighbor, saying the U.S. will impose a 5% levy on "all goods coming into our country from Mexico" from June 10, which will "gradually increase until the Illegal Immigration problem is remedied." The shock tweet sent investors into safe haven assets, with gold climbing back above $1300/ounce, amid fears that another increase in tariffs could tip the U.S., and maybe the whole world, into recession.
/ESM19 Value: YVAH 2792 YPOC 2790 YVAL 2782 GAP 2790.75
/ES Plan: Yesterday market closed balanced but overnight looks bearish (GBT 2725) moving below yesterday's range, so options are:
A) If market remains below HVE 2765 with bearish internals, sell towards ONL-HVE 2753.75 LVN 2744 and HVEs 2738-2726.
B) If market starts to move above 2765 with bullish internals, buy towards HVE-YLOD 2774-76 HVE 2784 and GAP-ONH 2791.
Tips: Overnight was a big down session so as usual after a large extension, be prepared for a bounce back up. Keep in mind that's the last day of the month and End of Month (EOM) always adds volatility.
Today's Economic Calendar
09:45 Chicago PMI
10:00 Consumer Sentiment
12:00 PM Fed's Williams Speech
01:00 PM Baker-Hughes Rig Count
Questions via @verniman direct message (RTH) or email (After Close).
Glossary of terms
