Sunday Night Futures: Will Tariffs Trigger a Full-Blown Crash?
As we head into the overnight session on Sunday, the market is hanging by a thread. The last two days have been nothing short of chaos — ES has dropped 10%, and there’s no sign of calm yet. The tariff news continues to dominate, with no sign of pullback or policy softening from the administration.
Some are now drawing comparisons to the 1987 crash, and while that may seem extreme, the current fragility of the market cannot be overstated. Unless we see:
A White House reversal on tariffs,
A delay in implementation, or
A diplomatic negotiation effort to ease economic tensions,
…it’s hard to imagine this slide slowing down.
The overnight Sunday session could be pivotal. If no resolution comes through over the weekend, we could see another 3–5% gap down into Sunday night and Monday morning — potentially triggering forced liquidations, hedge fund margin issues, and serious systemic stress.
Three Overnight Scenarios to Prepare For
1. Massive Gap Down (3–5%)
These types of opens are brutal and usually untradeable at the open.
Best plan: Wait for some structure — higher lows or a reversal base — before entering. Don’t get caught chasing the downside unless it sets up cleanly.
2. White House Reversal or Surprise Negotiation
If there's any positive surprise — like a walk-back or delay in tariffs — markets will gap up aggressively.
In that case: Do not fade the move. Ride the momentum long with disciplined entries.
3. Mild Down Open, Then Breakdown
This scenario opens with a slight dip, then accelerates selling once the market opens on Monday.
Look for failed bounces and use lower highs as entries to ride downside continuation.
This Sunday night could set the tone for the entire week, or even the month. If you're trading this volatility, be prepared with your scenarios, know your risk, and don’t fight the tape.
What do you think?
Drop your thoughts below. I’d love to hear how you’re prepping for the Sunday night open. Will we see capitulation… or a policy rescue?
— Shawn
Disclosure:
The information provided in this article is for educational purposes only and should not be considered as financial advice. Trading and investing in financial markets involve substantial risk, and it is important to conduct your own research and consult with a qualified financial professional before making any investment decisions. The author is not responsible for any financial losses or gains that may result from actions
Trading futures, stocks, and options involves significant risk and is not suitable for all investors. This content is for educational purposes only and does not constitute financial advice.