U.S. stock futures are pointing to a higher open as equities look to close out the second quarter by extending Tuesday’s big rally into the best three-day gain since February. The Dow and S&P 500 are now back in the black for 2016 and for Q2, but the Nasdaq is still in the red for both periods. Overall, major U.S. averages have now recovered about 60% of their post-Brexit losses.
In Asia, Japan +0.1% to 15576. Hong Kong +1.8% to 20794. China -0.1% to 2929. India +1% to 26999.
In Europe, at midday, London +0.5%. Paris +0.7%. Frankfurt +0.3%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.2%. Crude -0.9% to $49.42. Gold -0.5% to $1319.70.
Ten-year Treasury Yield +5 bps to 1.52%
(Source: Seeking Alpha)
Price only produced a very shallow decline before continuing its upward trajectory, exceeding all upside targets erasing nearly two-thirds of Brexit decline. End of Quarter window dressing will likely keep a firm bid to price ahead of the long Fourth of July Holiday.
Today is Cycle Day 2 (CD2)…Expectation is for some back n fill type trade with current bullish swing remaining intact. Initial support is marked at 2057.25 Central Pivot with stronger support between 2040 – 42 zone. Price is currently neat CD2 Max Penetration Level so additional upside may be a struggle.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2090.00; LOD Range Projection: 2040.00; CD2 Max Penetration Level: 2076.25; CD2 Max Violation Level: 2011.00; Cycle Day 1 Low: 2022.75; 3 Day Central Pivot: 2022.00; 3 Day Cycle Target: 2041.00; 10 Day Average True Range: 33.65
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (U) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: IF price clears and converts PH (2067.25), THEN further extension measures 2088.25 – 2090.00 STATX Zone.
Scenario 2: Violation and conversion of 2057.25 would be initial sign of weakness targeting 2042 – 40 zone.
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
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