Outlook 07/02: U.S. stock index futures edged lower overnight after progress in trade talks between Beijing and Washington but kept optimism in check amid a fresh U.S.-Europe tariff dispute. President Trump announced that any trade deal with Beijing would be "somewhat tilted" in favor of Washington and said Iran was "playing with fire" after the Islamic Republic breached its nuclear deal limit.
/ESU19 Value: YVAH 2978 YPOC 2968 YVAL 2964 GAP 2968.25
/ES Plan: Yesterday market closed balanced but overnight action continues on that way, moving within Yesterday's value, so we've these options:
A) If market remains above LIS HVE 2962 with bullish internals, buy towards GAP 2968 HVE 2970 ONH 2972 and PBT 2985.
B) If market starts to move below LIS 2962 with bearish internals, sell towards ONL 2959.75 GAP 2954.75 and HVE 2948.
Tips: In a two way auction process the market participants of a day time frame tend to play to the exactness of levels and in that process tend to break value area levels by few ticks and come back into value leaving an auction failure. Markets hate precision. The people who are obsessed playing to the exactness of levels can enter into emotional trades and the other players are waiting to jump in so that they can be wiped out.
Today's Economic Calendar
11:00 Fed's Mester Speech
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