Outlook 02/28: U.S. stock index futures pointed to more losses early Friday after the major indexes suffered a tumble that sent them more than 10% below their record highs. It only took the SP500 six days to fall from an all-time high into correction levels, marking the broad index’s fastest drop of that magnitude outside of a one-day crash, the worst weekly performance since 2008.
/ESH20 Value: YVAH 3091 YPOC 3066 YVAL 3032 GAP 2956
/ES Plan: Yesterday market closed bearish and overnight session continues on that way, moving below yesterday's range, so these're the options for today's regular trading session:
A) If market remains below LIS HVE 2907 with bearish internals, sell towards ONL 2879 and HVEs 2867-2844-2825-2815.
B) If market moves above LIS HVE 2907 with bullish internals, buy towards HVE 2918-2937 GAP 2956 and ONH-HVE 2980.
Note: On high volatility days, your first trading rule is 'manage your risk'. Regardless of how much more money you could have made, you do realize that you just can not manage risk on this enviroment. The risk is just too great (>20p stops). When volatility rises this much and you see a thin order book (2 digits), I strongly recommend to stay aside. Don't panic, be patient until the market recovers a 'normal' tradable regime. Keep in mind that current /ES rotation factor is greater than 20 points.
Today's Economic Calendar
09:45 Chicago PMI
10:00 Consumer Sentiment
01:00 PM Baker-Hughes Rig Count
03:00 PM Farm Prices
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