In Europe, at midday, London -0.7%. Paris -0.5%. Frankfurt -0.5%.
Futures at 6:20, Dow -0.3%. S&P -0.2%. Nasdaq -0.2%. Crude flat at $30.34. Gold +0.7% to $1112.70.
Ten-year Treasury Yield -2% to 1.99%
(Source: Seeking Alpha)
FOMC meeting begins
8:55 Redbook Chain Store Sales
9:00 FHFA House Price Index
9:00 S&P Case-Shiller Home Price Index
9:45 PMI Services Index Flash
10:00 Richmond Fed Mfg.
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index
1:00 PM Results of $26B, 2-Year Note Auction
PTG Trading
Prior Session’s trade action was textbook Cycle Day 1 as expected decline unfolded reaching 1858.50, lower range projection target outlined in DTS Report 1.25.16. In overnight trade price has rebounded sharply back to 1875.75 3 Day Central Pivot. Bulls will need to secure this level as support if the rally is to continue during cash session, otherwise it will be just characterized as a weak oversold bounce.
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL…Price will need to find some balance and stabilization today above CD1 Low (1868.00), otherwise failure to do so keeps door open for further decline. S&P continues to take its cue from Crude Oil as it’s 20 day correlation factor is 0.97… Average True Range (10) remains elevated at 45.05 handles.
HOD Projection = 1896.50; 3 Day Cycle Target = 1894.00; CD2 Maximum Penetration Level = 1912.50; LOD Projection = 1846.00; CD2 Maximum Violation Level = 1848.50. 3D CPZ = 1876.50 – 1875.00. Daily Pivot = 1881.25.
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: March 2016 (H) 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 can hold above CD1 Low (1868.00) anf THEN clear and convert 1875.50 SPOT, upside targets 1881.25, then 1886.00 SPOT. Above this level measures 1894.00 – 1896.50 zone.
Scenario 2: Initial resistance is marked at 1875.75 SPOT…Failure to convert this level places dominance in bear camp…Violation and conversion of CD1 Low (1868.00) opens door for retest of 1856.00 SPOT.
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