Outlook 06/11: It looks like there is another session of gains in store, with SP500 ahead by over 0.5%. The advance comes despite the latest trade war comments from President Trump, who said that if Chinese President Xi Jinping did not attend the G-20 meeting later this month, there would be additional duties "immediately" levied on Chinese goods. "The China deal is going to work out. You know why? Because of tariffs," he told CNBC. "Right now, China is getting absolutely decimated by companies that are leaving China, going to other countries, including our own, because they don’t want to pay the tariffs."
/ESM19 Value: YVAH 2900 YPOC 2894 YVAL 2889 GAP 2889.75
/ES Plan: Yesterday market closed balanced but overnight looks more bullish, moving above Yesterday's value, so today's options:
A) If market remains above LIS HVE YVAH 2900 with bullish internals, buy towards ONH 2908 HVE-PBT 2918 and HVEs 2924-2936.
B) If market starts to move below 2900 with bearish internals, sell towards HVE 2889.75 ONL 2886.25 and HVEs 2883-2873.
Tips: Overnight inventory is bullish. The expected action is a counter-auction relative to overnight inventory; failure to see the counter-auction would be an indication of a potential trend day. Keep in mind that we're on the rollover week, so volume from June contract starts to dries up towards September contract. (Pace of the Roll now is 10%).
Today's Economic Calendar
1:00 PM 3-Year Note Auction
Questions via @verniman direct message (RTH) or email (After Close).
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