US-China 90%

Outlook 06/26: SP500 futures are ahead by 12 points, as U.S. Treasury Secretary Steven Mnuchin said that the trade deal between the United States and China is "about 90%" complete. It followed a series of Fed comments on Tuesday that trimmed hopes of a big July rate cut and weighed down the Wall Street benchmarks. Fed Chair Jerome Powell said the central bank is "insulated from short-term political pressures", while St. Louis Fed President James Bullard, the most dovish of the FOMC's voting members, declared that a 50 basis point rate cut in July would likely be "overdone" given the underlying strength of the U.S. economy.

/ESU19 Value: YVAH 2952 YPOC 2939 YVAL 2920 GAP 2922.25

/ES Plan: Yesterday market closed balanced but overnight looks more bullish, moving within Yesterday's value, so these're the options:

A) If market remains above LIS YVAL 2930 with bullish internals, buy towards ONH 2939 HVE 2943-48 YVAH-GAP 2952 and YHOD 2958.

B) If market starts to move below LIS YVAL 2930 with bearish internals, sell towards HVE 2924 ONL 2917.50 and HVEs 2908-2900.

Tips: Volume is key. If we break out of a trading range and volume decreases, probably it's not going to be a successful break, but if we break and volume increases then we've a good chance to get a successful breakout.

Today's Economic Calendar

10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
01:00 PM 5-Year Note Auction

Questions via @verniman direct message (RTH) or email (After Close).

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