World stock markets are getting back to full strength as investors cheered measures to contain the outbreak of a potentially deadly coronavirus. DJIA futures are pointing to a 100-point gain at the open, while tech rallies on earnings from Netflix (NFLX) and IBM (IBM).
In Asia, Japan +0.7%. Hong Kong +1.3%. China +0.3%. India -0.5%.
In Europe, at midday, London +0.1%. Paris flat. Frankfurt flat.
Futures at 6:20, Dow +0.3%. S&P +0.4%. Nasdaq +0.7%. Crude -0.7% to $57.96. Gold flat at $1557.90. Bitcoin -0.2% to $8640.
Ten-year Treasury Yield flat at 1.77%
Source: Seeking Alpha https://seekingalpha.com
S&P 500 (ES)
Prior Session was a Cycle Day 1 (CD1) Normal was for a decline which unfolded and reached lower projected level during GLOBEX with 100% short inventory. Expected response was for a counter-auction to relieve the bearish condition. Open Range was bullish out of the gate as this Cycle’s Rally began to unfold, auctioning price higher filling Friday’s gap. Buyers “dried-up” near highs as sellers pushed price lower during afternoon session settling at 5-day Point of Control.
Today is a Cycle Day 2 (CD2) Normal is for “back n fill” price action as Value is forming a 3-day consolidation range. Key Line -in-Sand (LIS) is marked at 3317 for bulls to defend. Should sellers take control, retest of CD1 Low (3307.25) would be anticipated. Bears will need to defend 3-day Value High 3326. Overall bullish trend remains intact.
IF Prior High (3329.75) is cleared, THEN CD2 Upper Penetration Target Zone measures 3339 – 3341. IF 3317 (LIS) is violated and converted to lower resistance, THEN deeper downside targets CD1 Low (3307.25), followed by 3303 CD2 Violation Level.
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CD2 Range High = 3341.00 CD2 Range Low = 3312.00 CD2 Range Avg = 24.50
Bull Scenario: IF Bulls hold bid above 3330, THEN initial upside potential targets 3337 – 3341 zone.
Bear Scenario: IF Bears hold offer below 3330, THEN initial downside objective targets 3322 – 3318 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
Nasdaq 100 (NQ)
CD2 Range High = 9235.00 CD2 Range Low = 9180.00 CD2 Range Avg = 60.41
Bull Scenario: IF Bulls hold bid above 9200, THEN initial upside potential targets 9224 – 9240 zone.
Bear Scenario: IF Bears hold offer below 9200, THEN initial downside objective targets 9180 – 9170 zone.
Range Projections and Key Levels (NQ) March 2020 (H) 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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