In Europe, at midday, London -1.1%. Paris -1.5%. Frankfurt -1.9%.
Futures at 6:20, Dow +0.3%. S&P +0.4%. Nasdaq +0.8%. Crude +0.5% to $32.46. Gold +0.3% to $1119.90.
Ten-year Treasury Yield flat at 1.99%
(Source: Seeking Alpha)
8:30 Durable Goods
8:30 Initial Jobless Claims
9:45 Bloomberg Consumer Comfort Index
10:00 Pending Home Sales
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $29B, 7-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
S&P e-mini (ES) ran the entire 10 Day Average True Range of 42.83 handles from high to low (45.50) yesterday as price appears to be developing a wide-range consolidation pattern in the short-term. Key price edges of interest are 1910.00 – 1863.00.
Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…With the increased volatility, intra-cycle targets are getting achieved in short order then reversing. Expectation is simply for more of the same until a reversal from larger downtrend occurs or reaffirmation of existing downtrend is confirmed. Keep your seats buckled and chin straps secure.
Range Projections and Key Levels:
HOD Projection = 1909.00; LOD Projection = 1863.50; CD1 Max Penetration Level = 1920.50; CD1 Max Violation Level = 1839.50; Average Cycle Decline = 1872.00.
**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 holds above 1872.00, THEN upside objective is 1892.00…Strength above this level targets 1902.00, then 1909.00.
Scenario 2: Violation and conversion of 1872.00 opens door to test 1863.50 SPOT…Below this level targets 1856.25 STATX Zone Low followed by 1852.00 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!
“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