In Europe, at midday, London -0.1%. Paris +0.2%. Frankfurt +0.9%.
Futures at 6:20, Dow +1%. S&P +0.5%. Nasdaq +0.6%. Crude -0.7% to $63.88. Gold flat at $1335.40. Bitcoin -9.1% to $12343.
Ten-year Treasury Yield -2 bps to 2.53%
Economic Calendar
S&P 500 (ES)
Today is Cycle Day 1 (CD1)…Normal is for some magnitude decline with average measuring 2780.50. Overnight trade has price higher 2803 handle which is 75% of 10-day average true range. We will initially mark this level as tentative resistance until proven otherwise.
Scenario 1: IF price clears and converts _H (2797.50, THEN upside expansion targets 2803.50, followed by 2806.50 – 2807.50 zone.
Scenario 2: IF price violates and converts PH (2797.50) to lower resistance, THEN initial target measures 2792 handle, followed by 2787.25.
Range Projections and Key Levels (ES)
HOD ATR Range Projection: 2807.42; LOD ATR Range Projection: 2788.08; Cycle Day 1 Low: 2747.75 3 Day Central Pivot: 2779.50; 3 Day Cycle Target: 2820.00; 10 Day Average True Range: 15.41; VIX: 10.51
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is trading higher reaching 6817.50 CD1 Penetration Level. It would take a conversion back into prior range to secure an excess high.
Scenario 1: IF price clears and converts PH (6798.50). THEN upside expansion measures 6817.50, followed by 6823..6828.50 and 6833.50 3 Day Cycle Target.
Scenario 2: IF price violates and converts PH (6798.50) to lower resistance, THEN downside targets 6773.00, followed by 6766.50.
Range Projections and Key Levels (NQ)
HOD ATR Range Projection: 6824.00; LOD ATR Range Projection: 6771.25; Cycle Day 1 Low: 6672.25 3 Day Central Pivot: 6746.75; 3 Day Cycle Target: 6833.50; 10 Day Average True Range: 47.97; VIX: 10.51
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!
Good Trading…David
“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.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.
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