Most analysts agree the U.S. economy is rebounding from a weak first quarter, and today’s final GDP will likely offer more evidence that forecast is turning into reality. First-quarter GDP, reported at 8:30 a.m. ET, is expected to have contracted by 0.2%, an improvement over the previous revision’s contraction of 0.7%. Along with other economic data, the figure will lead directly back to the Federal Reserve, which is mulling the timing of a future interest rate hike
S&P e-mini (ES) traded in a very narrow range with low volume, as price consolidates within a 10 handle range (2110 – 2120). It seems as though summertime trade is here and as traders we need to adjust our trade outcome expectations…Remain disciplined.
Today is Cycle Day 3 (CD3)…Average Cycle Target (2121.00) has been satisfied, so today is “jump-ball” for direction. Price will need to exceed stated parameters above for next tradable move…Stay Alert!
Odds of 3D Rally > 10 = 82%; Odds of 3D Rally > 20 = 54%; Average Range = 17.75; Max Average Range = 21.50; Possible HOD = 2129 based upon penetration of CD2 high; Possible LOD = 2100.50 based upon violation of CD2 low.
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: July (U) Contract
Scenario 1: Clear and conversion of PH (2120.25) targets 2125.75, followed by 2128.25 – 2131.50 STATX Zone…Range Breakout Target 2134.50.
Scenario 2: Violation and conversion of PL (2111.25) targets 2106 – 2108, followed by 2104.75 – 2100.50 STATX Zone and CD3 Low Violation Target.
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