Outlook 05/04: Stock futures fell on Sunday opening as traders weighed the reopening of the economy along with brewing tensions between China and the U.S. Secretary of State Mike Pompeo said there was a “significant amount of evidence” connecting the coronavirus to a lab in the Wuhan region of China. Those comments came after National Economic Council Director Larry Kudlow said Friday that China will be “held accountable” for the coronavirus. Earlier in the week, President Donald Trump said he was considering imposing tariffs on China for its handling of the outbreak.
/ESM20 Value: YVAH 2845 YPOC 2822 YVAL 2812 GAP 2821
/ES Plan: Last session market closed bearish (PBT 2766), but overnight looks more bullish (PBT 2828), moving below Friday's range, so these are the initial balance options for today's opening:
A) If market moves above LIS LVN 2800 with bullish internals, buy towards ONH 2814.50 GAP 2821 PBT 2828 and YVAH 2845.
B) If market moves below LIS LVN 2800 with bearish internals, sell towards GAP 2781 HVE 2775 ONL 2771 and PBT 2766.
Note: Usually after a bearish gap on Sunday's opening, we can expect a counter-trend move after the regular open. Despite of that, double digit gaps rarely get filled on the first day. Don't be anxious and wait for the first clues about the dominant force. Let see.
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