Outlook 08/26: U.S. futures rebounded from early overnight losses after President Trump said Chinese officials had called him to say they want to restart trade talks. China "wants to make a deal," Trump said at the G-7 meeting, adding he had received "two calls from China." Chinese government did not directly address Trump's comments, but Vice Premier Liu said his side wants to "resolve the problems through negotiation and cooperation in a calm manner." The conciliatory tone follows additional threats over the weekend, including a White House statement that the president had regretted not escalating tariffs further on Chinese goods. However, the China's Global Times said the country is preparing for a "scenario in which China-U.S. trade relations deteriorate further, even much worse than now."
/ESU19 Value: YVAH 2936 YPOC 2907 YVAL 2864 GAP 2855.75
/ES Plan: Last session market closed bearish, but overnight looks more bullish after China call, moving within Friday's value, so these're the options for today:
A) If market remains above LIS HVE 2867 with bullish internals, buy towards ONH-HVE 2889 and HVEs 2907-2918-2936.
B) If market moves below LIS HVE 2867 with bearish internals, sell towards GAP 2855.75 LVN 2844 and HVEs 2825-2815.
Tips: Overnight's buying was a 'news driven event' (China Call), so there's a chance for a reversal to the scene of crime (SoC 2835), zone where the news-based move was initiated and susceptible to be retested.
Today's Economic Calendar
10:30 Dallas Fed Manufacturing Survey
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