As the President makes a European tour and dines with the Queen global trade uncertainty are having seeing impacts on markets around the world.  Asian markets closed lower and European are also in the red this morning on the deepening uncertainty.  US futures have recovered significantly from overnight lows but continue to point to lower open this morning.

There is nothing to inspire the market on the Earnings Calendar this morning so hopefully the PMI & ISM numbers will help provide some clarity to calm the nerves of traders and investors.  Although we can expect the price action volatility to very challenging the short term oversold condition could provide us at least a modest relief rally in the near future.  Unfortunately, considerable technical damage and price resistance above does not favor a speedy recovery unless we find some resolutions to the trade uncertainty.

On the Calendar

On the Earnings Calendar we have just 20 companies reporting with nothing particularly notable today.

Action Plan

Swirling uncertainty continues to plague the market as China ramps up the rhetoric issuing a white paper blaming the US for the Trade War.  Asian markets closed modestly lower across the board.  As the president makes a European tour there markets are also modestly lower as global trade worries deepen.  As a result, US Futures reflected the uncertainty being down nearly 175 points during the night but slightly recovering as we move toward the open.

Perhaps the PMI Mfg, ISM Mfg and Construction Spending reports on the Economic Calendar this morning can help to provide some clarity and settle the nerves of traders and investors.  As the technical damage deepens expect price action volatility to remain very challenging with sudden overnight and even intr-day new driven reversals.  Anything is possible if more bad news is released but the short-term oversold condition will have me watchful for at least a modest relief rally in the near future. 

Trade Wisely,

Doug