U.S. equity index futures are pausing for breath, with the Nasdaq nominally higher and the Dow and S&P 500 inching lower, after Wall Street snapped its tech losing streak on Wednesday.
8:30 Initial Jobless Claims
8:30 Producer Price Index
10:00 Wholesale Inventories (Preliminary)
10:30 EIA Natural Gas Inventory
11:00 EIA Petroleum Inventories
1:00 PM Results of $23B, 30-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
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Prior Session was Cycle Day 1 (CD1): Finding early support at Violation Low (3298), this cycle’s rally began, pushing price higher and recovering three-fourths of prior decline. Cycle objectives were easily fulfilled with the current heightened volatility. Range was 128.50 handles, twice the 10-day average with 1.9M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having fulfilled cycle objectives, normal for CD2 would be for some ‘back n fill’ consolidation to absorb recent “down/up” price swings. Price currently is trading mid-way between 2 day value zone and as such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3375, initially targeting 3395 – 3410 zone.
2.) Price sustains an offer below 3375, initially targeting 3360 – 3345 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3423 PVA Low Edge = 3382 Prior POC = 3410
Range Projections and Key Levels (ES) September 2020 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is trading within prior value having fulfilled upside cycle targets. Expectation for today’s trading is for some ‘back n fill’ consolidation to absorb recent “down/up” swings. Range was 543.50 handles with 693K contracts exchanges. As such, there are two scenarios to consider for today’s trading:
PVA High Edge = 11475 PVA Low Edge = 11260 Prior POC = 11275
Bull Scenario: IF Bulls sustain a bid above 11370, THEN initial upside estimate targets 11410 – 11450 zone.
Bear Scenario: IF Bears sustain an offer below 11370, THEN initial downside estimate targets 11320 – 11300 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
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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