Outlook 08/06: U.S. futures markets are pointing to positive territory for the session ahead, with SP500 futures up 0.8%, following the worst trading day of 2019. Traders may have been buoyed after the People's Bank of China took steps to stabilize the yuan, setting the currency's reference point higher than the key 7 per dollar level. Late Monday, the U.S. Treasury Department labeled China a currency manipulator for the first time since 1994, opening the door to new sanctions and ratcheting up already high tensions.
/ESU19 Value: YVAH 2876 YPOC 2869 YVAL 2832 GAP 2828.50
/ES Plan: Yesterday market closed bearish but overnight looks more bullish, moving within yesterday's value, so today's options:
A) If market remains above HVE 2843 with bullish internals, buy towards ONH 2865.25 HVEs 2867 and HVEs 2876-2888-2907-2918-2936.
B) If market remains below HVE 2843 with bearish internals, sell towards GAP 2828.50 HVEs 2825-2815-2807 LVN 2800 and ONL 2875.75
Tips: Yesterday was a big down day so as usual after a trend day, market offers a bounce back up. VIX climbs to 22.00 so, on high volatility days like these, your first trading rule is 'manage your risk'. When volatility rises like this and you see a thin order book, I suggest to stay aside until market recovers a 'normal' tradable regime.
Today's Economic Calendar
10:00 JOLTS
01:00 PM 3-Year Note Auction
01:05 PM Fed's Bullard Speech
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