Australia’s central bank kept its cash rate steady at a record low of 2% on Tuesday, but said subdued inflation meant there might be room for further easing if needed. In a brief statement, RBA Governor Glenn Stevens stated the outlook for the economy had actually “firmed a little over recent months” with business conditions improving and employment stronger than expected. That was a change from the October statement when no guidance on policy was offered.
8:30 Gallup US ECI
8:55 Redbook Chain Store Sales
10:00 Factory Orders
Bulls took immediate charge of price and direction pushing higher in slow methodical trend up fashion in prior session to ultimately reach 3 Day Average Cycle Target of 2099.25 and 2105 Cash SPX. Expectation for today is for some back n fill to absorb recent gains.
Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Odds of Decline > 10 = 72%; Odds of Decline > 20 = 42%; Average Range = 18.75; Max Average Range = 22.50; Average Decline = 21.75; Possible HOD = 2108.75 CD1 Penetration ; Possible LOD = 2078.26 Average Decline.
***Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: December (Z) 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 clears and converts PH (2100.00), THEN expansion of range targets 2103.75 – 2107.75 STATX Zone with 2108.75 CD1 Penetration Level.
Scenario 2: Today is CD1 and normal spill down with good odds (72%) of decline at least 10 handles. Any deep decline is expected to find responsive “dip buyers” at key spots. Levels to be mindful of on pullback for potential support are: 2091.00 – 2089.25 zone followed by 2087.50 – 2085.75 Central Pivot Zone. Key Support is marked at 3 Day CPZ between 2083.00 – 2081.50. Average Cycle Decline Range Decline Target is 2078.25.
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