Watch for the Potential Algo Trap Tomorrow: August 19th

OANDA:US30USD   US Wall St 30
Futures have clearly risen tonight from a false report that Trump said he would extend exemptions from banning Huawei. However, he later confirmed in the most recent update to reporters around 5PM EST today, that this report was completely false and that his staff will issue a final statement tomorrow with a likely ban coming (and possibly an indefinite ban all together).

He also noted (again) he is not ready to make a deal with China and that the ongoing protests make it almost impossible for any deal to even be proposed.

Watch for the potential algo sell-off if the news comes where they ban Huawei tomorrow. Look for an open potentially around 26,080 +/- 40pts with a midday fall; the news could force us down into 25,455 this week with further downside unless the Fed hints at a 50bps cut in September and confirmation of Quantitative Easing.

Keep a close eye on Huawei tomorrow and the Fed talk on Thursday.

-- zSplit