Outlook 07/24: U.S. stock futures under more pressure today, as tensions rise between Beijing and Washington. China ordered the U.S. to close its consulate in the southwestern city of Chengdu, a day after Washington forced Beijing to leave its mission in Houston, citing alleged spying. The Chengdu consular district serves as a key U.S. listening post for developments in Tibet and China's development of strategic weapons in neighboring regions. It's the latest flashpoint between the two countries as the tit-for-tat spat clouds prospects for trade between the world's two largest economies.
/ESU20 Value: YVAH 3284 YPOC 3266 YVAL 3229 GAP 3226.50
/ES Plan: Yesterday market closed bearish, but overnight looks more balanced, still moving below yesterday's value, so these are the initial balance options for today's opening:
A) If market remains below LIS HVE 3207 with bearish internals, sell towards ONL 3199.25 GAP 3183 and 3177.
B) If market moves above LIS 3207 with bullish internals, buy towards HVE 3221 GAP 3226 HVE 3231 and ONH 3239.
Note: When market opens and remains below previous value area low, it is a clearly bearish signal. But when a market opens below value but then fails to go through the overnight low and begins to trade back into value with volume at highs increasing, it is a signal of reversal. There is a strong tendency to rotate all the way through the value area.
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