Outlook 08/16: U.S. indexes stabilized yesterday after days of wild swings, with SP500 futures now up by 0.8%. After threatening retaliation against incoming American tariffs, China urged the U.S. to meet it "half way," while President Trump talked up formal negotiations and said he expected the trade dispute to be short-lived. The yield curve has also righted itself by about 4 bps, while July retail sales surprisingly picked up, though industrial production numbers disappointed again, in the face of trade war fallout.
/ESU19 Value: YVAH 2857 YPOC 2848 YVAL 2842 GAP 2847.75
/ES Plan: Yesterday market closed balanced, but overnight looks more bullish (PBT 2900), moving above yesterday's value, so these're the scenarios for today's RTH session:
A) If market remains above LIS HVE 2867 with bullish internals, buy towards ONH 2878.50 HVE 2889 PBT 2900 and 2907.
B) If market moves below LIS HVE 2867 with bearish internals, sell towards HVE 2857 GAP 2847.75 and ONL 2849.50
Tips: Overnight inventory is 100% 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.
Today's Economic Calendar
10:00 Consumer Sentiment
01:00 PM Baker-Hughes Rig Count
Questions via @verniman direct message (RTH) or email (After Close).
